The Vancouver-based company issued nearly 24.6 million units for gross proceeds of $4,923,100, with each unit containing one share and one half-warrant exercisable at C$0.40 for a two-year period.
"I am humbled by the overwhelming interest in our company and honoured to be welcoming new and existing shareholders into this oversubscribed financing,” Tectonic CEO Tony Reda told shareholders in a statement. With a strong treasury, we are well-positioned financially and look forward to a very active and exciting 2020 field season as we embark on two monumental drill programs at our Tibbs and Seventymile projects."
READ: Tectonic Metals stakes 4,800 hectares of new ground in Alaska, acquires valuable data about the region
Under the term sheet, the warrants are subject to acceleration if Tectonic’s volume-weighted average share price is C$0.56 or more over a consecutive ten-day period.
Part of the offering is considered a related party transaction because 500,000 units were issued to Tectonic director Mel Benson. The firm said it relied on exemptions from the formal valuation and minority shareholder approval requirements provided on the basis that Benson's participation in the offering did not exceed 25% of the fair market value of the company's market capitalization.
Tectonic paid a finder’s fee of C$194,826 and issued 956,130 warrants to Red Cloud Securities Inc, Amvest Capital Inc (acting through Mann Mann Jensen Partners), Canaccord Genuity Corp, Haywood Securities Inc, Generic Capital Corporation, Intrynsyc Capital Corporation and select others. Each Finders Warrant is exercisable for a common share at an exercise price of C$0.20 and expires June 30, 2022.
A portion of funds will also be dedicated for general working capital.
Tectonic’s portfolio includes the Tibbs project, where high-grade gold was discovered in trenches, and the Seventymile project, a 40-kilometre-long gold belt that lies in a newer gold district near the Alaska-Yukon border.
The firm recently added a collection of 74 mining claims known as the Maple Leaf Property, located within the prolific Goodpaster mining district about 15 kilometres from Tibbs.
Contact Angela at [email protected]estors.com
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