pcNewsWire – Firesteel Resources Inc. (TSX-V: FTR) has closed a first tranche of its previously announced private placements, issuing 4,729,537 units for gross proceeds of $354,715 and $220,000 face amount of 9% convertible unsecured debentures.
Net proceeds will be used to fund its working capital and its previously announced proposed joint venture transaction with Nordic Mines.
NEWS RELEASE
Firesteel Resources Inc. Closes $574,715 Private Placement
FIRESTEEL RESOURCES INC. (TSX-V: FTR) (“Firesteel” or the “Company”) today announced that it has closed a first tranche of its previously announced private placements (the “First Tranche”). Specifically, the Company issued 4,729,537 units (“Units”) to raise gross proceeds of $354,715. Each Unit consists of one common share of the Corporation (“Common Share”) and one-half of one Common Share purchase warrant (“Warrant”). Each whole Warrant is exercisable at $0.20 for 2 years from the date hereof.
The Company also issued $220,000 face amount of 9% convertible unsecured debentures (“Debentures”). The Debentures may be converted by the holders at $0.10 per Common Share until the maturity date of June 30, 2020. The Company also has the right to accelerate the conversion of the Debentures at any time following 24 months after today’s date into Common Shares if the Common Shares trade above $0.25 for twenty consecutive days.
In connection with the First Tranche, the Company paid finder’s fees of $36,423.88 to Canaccord Genuity Corp. The Company also issued: (i) 176,000 finder’s warrants, exercisable to purchase Common Shares, at a price of $0.10 per Common Share for a two year period; and (ii) 250,985 finder’s warrants, exercisable to purchase Units (at a price of $0.075 per Unit) for a two year period.
The First Tranche is subject to the final acceptance of the TSX Venture Exchange, all securities issued pursuant to the First Tranche bear a four month and one day hold period in accordance with applicable Canadian securities laws. In addition, the Company has received approval of the TSX Venture Exchange to extend the closing date for the balance of the private placement until July 16, 2017. A director of the Company purchased $12,000 worth of Units pursuant to the First Tranche.
Pursuant to Multilateral Instrument 61-101 Protection of Minority Security Holders in Special Transactions (“MI 61-101”), the First Tranche constitutes a “related party transaction” as an insider of the Company subscribed for Units. The Company is relying on exemptions from the formal valuation and minority approval requirements of MI 61-101.
The Company intends to use the net proceeds from the First Tranche to fund its working capital and its previously announced proposed joint venture transaction with Nordic Mines.
Firesteel also announced that it has made its required first payment of $1,000,000 to Nordic Mines to acquire 10% of Nordic Mines Marknad.
About the Company
Firesteel is an exploration-stage junior mining company engaged in the acquisition and exploration of prospective precious and base metal properties in Canada and stable jurisdictions around the world.
Firesteel currently has one highly prospective property in British Colombia.
The Star property is currently operated under a Joint Venture agreement between Firesteel (49%) and Prosper Gold. (TSX-V: PGX) (51%).
Previous highlights of the Star property include:
• 6,700 Ha property hosts five significant Cu-Au targets
• Star Target – In 2014 a total of 6221.5 meters were drilled in 19 holes. Recent drill results include 107m of 0.77% Cu & 0.41 g/t Au including 64m of 1.12% Cu & 0.59 g/t Au (previously reported September 23, 2014).
Qualified Person
The scientific and technical information in this news release has been reviewed and approved by Paul Sarjeant, P.Geo., a Qualified Person under National Instrument 43-101 and a director of the company.
For a detailed overview of Firesteel Resources Inc. please visit:
www.FiresteelResources.com
For further information, please contact:
Michael Hepworth
President and Chief Executive Officer
(416)419 5192
mhepworth@firesteelresources.com
www.firesteelresources.com
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Neither the 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
