pcNewsWire – Broome Capital Inc. (TSX-V: BCP) has completed previously announced qualifying transaction (QT) and non-brokered private placement of 15,000,000 units at $0.05 per unit for gross proceeds of $750,000
News Release
Broome Capital Inc. Announces Closing of Qualifying Transaction
May 18, 2017 – Vancouver, British Columbia. BROOME CAPITAL INC. (“Broome”) (TSX-V: BCP) is pleased to announce that it has closed its previously announced qualifying transaction, being an option agreement (the “Option Agreement”) with Doctors Investment Group Ltd. (the “Optionor”). Under the terms of the Option Agreement, Broome will acquire a 100% interest in the Key Lake Road Property (the “KLR Property”) by making the following payments and incurring the follow exploration expenditures:
(a) $10,000 (paid) and 1,000,000 post-Consolidation Common Shares (issued) within 5 days of the TSX Venture Exchange approval of the Option Agreement.
(b) Completing $500,000 in expenditures within eighteen months of the Option Agreement.
During the term of the Option Agreement, Broome will be responsible for the annual claim maintenance fees. Broome has also granted the Optionor a 1% Gross Overriding Royalty (the “Royalty”) on the KLR Property. At the option of Broome, Broome may purchase one-half of the Royalty for $1,000,000.
As a result of closing of the Qualifying Transaction, Broome will be listed as a Tier 2 mining issuer on the TSX Venture Exchange, effective on opening of trading on May 19, 2017, under the symbol “BCP”.
Share Consolidation
On May 15, 2017, Broome consolidated its issued and outstanding common shares on the basis of three (3) pre-consolidation shares for one (1) post-consolidation share (the “Consolidation”). Prior to completion of the Qualifying Transaction financing and share consolidation, Broome had 9,406,625 pre-Consolidation common shares issued and outstanding and, on completion of the Consolidation, had 3,135,541 post-Consolidation common shares issued and outstanding.
Following closing of the Qualifying Transaction, Offering and Consolidation, there are now 19,135,541 issued and outstanding common shares of Broome.
Non-Brokered Private Placement Financing
In conjunction with closing the transaction, Broome completed a non-brokered private placement financing of 15,000,000 post-Consolidation Units (each a “Unit”) at a price of $0.05 per Share for gross proceeds of $750,000 (the “Offering”). Each Unit will be comprised of one post-Consolidation Common Share and one share purchase warrant (a “Warrant”), with each Warrant entitling the holder to purchase one additional post-Consolidation Common Share at a price of $0.06 per post-Consolidation share for a period of three (3) years from the date of issuance.
The securities will be subject to a hold period expiring on September 16, 2017 pursuant to applicable Canadian securities laws and the rules of the TSX Venture Exchange. No finder’s fee was payable under the Offering.
The proceeds of the Offering will be used for exploration work on the KLR Property and general working capital purposes.
Appointment of New Directors and Officers
On closing of the transaction, the board of directors is now comprised of Gunther Roehlig, Peter Hughes and W. Barry Girling. Mr. Roehlig will also serve as Chief Executive Officer and President, and Natasha Tsai will serve as Chief Financial Officer and Corporate Secretary. In conjunction with closing, Mr. Hughes resigned as Chief Executive Officer and Chief Financial Officer of the Company, and Beng Lai and Bipin Ghelani resigned as directors of the Company.
About the KLR Property
The KLR Property covers 2,406.7ha of mineral claims, located approximately 550 kilometers northnorthwest of the city of Saskatoon in Saskatchewan, straddling Provincial Highway #914, 60 kilometers south of the Key Lake Uranium mine. The KLR Property was last explored in 2015 with property-wide prospecting, mapping and rock chip sampling run in parallel with a targeted pack-sack diamond drilling program. A short-hole, pack-sack, diamond drilling program was conducted on the project, utilizing a Shaw diamond drill (AQ sized core) with an effective penetration depth of approximately 12 metres.
For further information please contact:
Broome Capital Inc.
Gunther Roehlig
(604) 683-0911
NEITHER TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
