pcNewsWire – Happy Creek Minerals Ltd. (TSX-V: HPY) has completed first tranche of previously announced non-brokered financing for gross proceeds of $1,368,207 through the sale of 4,090,035 common shares at $0.20 per share and 2,116,153 flow-through shares at $0.26 per FT share.
The proceeds from the sale of FT shares will be used to incur qualified exploration expense and together with proceeds of the sale of non flow-through shares, will be used to conduct primarily trenching and drilling on the company’s Fox tungsten property, B.C. and for general working capital.
Happy Creek Completes $1,368,207 First Tranche of Private Placement And Increases Size of Flow-Through Offering
July 5th, 2017 – Vancouver, British Columbia – Happy Creek Minerals Ltd. (TSX-V:HPY, the “Company”) announces the completion of the first tranche of its non-brokered financing announced May 30th 2017.
The Company has completed the first tranche of a non-brokered private placement for gross proceeds of $1,368,207 through the sale of 4,090,035 common shares at a price of twenty cents per share and 2,116,153 flow-through shares at a price of twenty-six cents per flow-through share. The shares will be subject to resale restrictions until October 31, 2017.
The proceeds from the sale of flow-through shares will be used to incur qualified exploration expense in accordance with Canadian Income Tax provisions and together with proceeds of the sale of non flow-through shares, will be used to conduct primarily trenching and drilling on the Company’s Fox tungsten property, B.C. and for general working capital.
A finder’s fee to qualified agents is payable in connection with the first tranche of the financing totalling $75,740 in cash and 302,171 broker warrants. Each broker warrant is exercisable into one common share of the Company at a price of $0.30 for a period of two years.
The Company anticipates closing the second tranche of the private placement in a few days. The flow-through portion of the private placement is currently oversubscribed. The Company will therefore increase the size of the flow-through portion of the offering to 6,741,153 flow-through shares at a price of $0.26 per share for gross proceeds of $1,752,700 (up from 5,769,230 flow-through shares and $1,500,000 announced in the May 30 news release).
In connection with the first tranche closing, the Company issued 765,035 common shares to persons that are directors or senior officers of the Company. The Company has determined that exemptions from the various requirements of TSX Venture Exchange Policy 5.9 and Multilateral Instrument 61-101 (“MI 61-101”) are available for the issuance of the common shares to the related parties. The Company relied on Section 5.5(c) of MI 61-101 for an exemption from the formal valuation requirement on the basis that the transaction is a distribution of securities for cash, and Section 5.7(b) of MI 61-101 for an exemption from the minority approval requirement as the fair market value of the transaction is not more than $2,500,000. The Company did not file a material change report more than 21 days in advance of the closing of the Offering, which the Company deems reasonable and necessary in the circumstances as the closing date of the Offering had not been established at that time and the Company wished to complete the Offering in an expeditious manner.
On behalf of the Board of Directors,
“David E Blann”
David E Blann, P.Eng.
FOR FURTHER INFORMATION PLEASE CONTACT:
David Blann, President, CEO
Phone: 604.662.8310 Email: Info@happycreekminerals.com
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.