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Tectonic Metals launches non-brokered private placement financing to fund upcoming drill programs

The company plans to raise $3 million for the jewel of Tectonic’s portfolio which is the Tibbs project and Seventymile, near the Alaska-Yukon border

Tectonic Metals - Tectonic Metals launches non-brokered private placement financing to fund upcoming drill programs
Tectonic, based in Vancouver, is focused on the acquisition, exploration and development of mineral resources from district-scale projects in politically stable jurisdictions

Tectonic Metals Inc (CVE:TECT) revealed Tuesday that the company has launched a non-brokered private placement financing of up to 15,000,000 units at a price of C$0.20 per unit to raise up to C$3 million to advance the company's Tibbs and Seventymile properties and to generate working capital.

The jewel of Tectonic’s portfolio at the moment is the Tibbs project, where high-grade gold was discovered in trenches. The money will also go into developing Tectonic’s Seventymile project, a 40-kilometre-long gold belt that lies in a newer gold district near the Alaska-Yukon border.

The Vancouver-based mineral exploration company said each unit is comprised of one share of Tectonic and one-half share purchase warrant. Each whole warrant will be exercisable for a share at a price of C$0.40 and will expire two years from the closing date of the private placement.

READ: Tectonic Metals says shareholders re-elect board of directors; adds market-making service

In a statement, Tectonic Metals CEO Tony Reda said: "We are pleased to have the opportunity to bring in significant new institutional investor support to the Tectonic registry on the heels of the strategic investment by Doyon, Ltd. The net proceeds from this placement will enable Tectonic to conduct two robust drill programs this year.”

He added: “We are ecstatic to advance our exploration program at Tibbs after our exciting results from last year's drill program, which included 6.03 grams per tonne Au over 28.95 metres on a newly discovered structure approximately 35 kilometers away from Northern Star's operating Pogo Mine.”

The Tectonic Metals boss noted that company is also “chomping at the bit” to drill test its Seventymile Project, which hosts a “40 kilometers long underexplored greenstone belt that hasn't seen a drill hole in 20 years despite some very interesting historical work."

The placement warrants are subject to an acceleration clause whereby if the volume-weighted average trading price of Tectonic's shares is C$0.56 or greater for a period of ten consecutive trading days, Tectonic has the right to accelerate the expiry date of the warrants to 30 days from the date of issuance of a news release by Tectonic announcing the accelerated exercise period.

Finder's fees may be payable on a portion of the offering, said the company, while adding that Red Cloud Securities Inc is acting as a finder in connection with the offering.

Closing is subject to the conditional acceptance of the stock exchange. All securities issuable under the offering will be subject to a four-month hold period from the date of closing.

Contact the author Uttara Choudhury at [email protected]

Follow her on Twitter: @UttaraProactive

Quick facts: Tectonic Metals

Price: 0.31 CAD

TSX-V:TECT
Market: TSX-V
Market Cap: $27.85 m
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