Brixton Metals Corporation (TSXV: BBB) (OTCQB: BBBXF) operates as an exploration and development company, which is primarily focused on gold and silver mining projects. The mining company currently operates four exploration projects; Thorn (British Columbia: copper, silver, and gold), Atlin Goldfields (British Columbia: gold), Langis-Hudson Bay (Ontario: silver, cobalt), and Hog Heaven (Montana, USA: silver, gold, copper).
Shares of the Canadian mining company rallied 11.11%, during trading on Monday, July 29, 2019. Over the past three months, Brixton Metals Corporation has seen average daily volume of 378,982 shares. However, volume of 1.61 million shares or dollar volume of C$402,500, exchanged hands during trading on Monday.
Brixton Metals Corporation gained on Monday, after the company announced a fully-subscribed private placement offering of C$6 million. Each private placement unit consisted of one common share at C$0.18 and one half of one common share purchase warrant exercisable at a price per share of C$0.25. The proceeds will be utilized for mostly Canadian Exploration Expenses (CEE) and working capital purposes. Here is the full press release detailing of the private placement:
Brixton Metals Corporation Press Release:
VANCOUVER, British Columbia, July 29, 2019 (GLOBE NEWSWIRE) — Brixton Metals Corp. (the “Company“) (BBB.V) (BBBXF) is pleased to announce a fully subscribed, non-brokered private placement of a combination of units and flow-through shares of the Company for gross proceeds of C$6,000,000 (the “Offering“). Each unit (a “Unit”) is being offered at a price of C$0.18 and will be comprised of one common share of the Company and one half of one common share purchase warrant (each whole warrant a “Warrant“). Each flow-through share (a “FT Share”) is being offered at a price of C$0.22 and will be comprised of one common flow-through share of the Company. Each Warrant entitles the holder thereof to acquire one common share of the Company at a price of C$0.25 for a period of 24 months from the date of closing of the Offering.
The gross proceeds from the issuance of the FT Shares will be used for Canadian Exploration Expenses (“CEE”), and will qualify as “flow-through mining expenditures” (the “Qualifying Expenditures”), as defined in subsection 127(9) of the Income Tax Act (Canada), which will be renounced to the subscribers with an effective date no later than December 31, 2019 to the initial purchasers of the Offered Securities in an aggregate amount not less than the gross proceeds raised from the issue of the FT Shares, as applicable, and, if the Qualifying Expenditures are reduced by the Canada Revenue Agency, the Company will indemnify each FT Shares subscriber for any additional taxes payable by such subscriber as a result of the Company’s failure to renounce the Qualifying Expenditures as agreed.
The net proceeds from the private placement of Units and the gross proceeds from the private placement of FT Shares shall be primarily used for exploration activities and for general working capital purposes.
The closing of the Offering is expected to occur on or about August 9, 2019 and is subject to receipt of all necessary regulatory approvals including the TSX Venture Exchange (the “TSXV”). The Units and FT Shares, including all underlying securities thereof, and any finders warrants issued with respect to the Offering, will be subject to a hold period of four months and one day in accordance with applicable securities laws.
This news release does not constitute an offer of securities for sale in the United States. The securities being offered have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, and such securities may not be offered or sold within the United States absent U.S. registration or an applicable exemption from U.S. registration requirements.
About Brixton Metals Corporation
Brixton is a Canadian exploration and development company focused on the advancement of its gold and silver projects toward feasibility. Brixton wholly owns four exploration projects, the Thorn copper-gold-silver and the Atlin Goldfields projects located in NWBC, the Langis-Hudson Bay silver-cobalt project in Ontario and the Hog Heaven silver-gold-copper project in NW Montana, USA. Brixton Metals Corporation shares trade on the TSX-V under the ticker symbol BBB. For more information about Brixton please visit our website at www.brixtonmetals.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.
Information set forth in this news release may involve forward-looking statements under applicable securities laws. Forward-looking statements are statements that relate to future, not past, events. In this context, forward-looking statements often address expected future business and financial performance, and often contain words such as “anticipate”, “believe”, “plan”, “estimate”, “expect”, and “intend”, statements that an action or event “may”, “might”, “could”, “should”, or “will” be taken or occur, including statements that address potential quantity and/or grade of minerals, potential size and expansion of a mineralized zone, proposed timing of exploration and development plans, or other similar expressions. All statements including statements in respect of regulatory approval, the proposed closing date and the expected size of the Offering, other than statements of historical fact included herein including, without limitation, statements regarding the use of proceeds, by their nature, forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements, or other future events, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, the following risks: the need for additional financing; operational risks associated with mineral exploration; fluctuations in commodity prices; title matters; and the additional risks identified in the annual information form of the Company or other reports and filings with the TSXV and applicable Canadian securities regulators. Forward-looking statements are made based on management’s beliefs, estimates and opinions on the date that statements are made and the Company undertakes no obligation to update forward-looking statements if these beliefs, estimates and opinions or other circumstances should change, except as required by applicable securities laws. Investors are cautioned against attributing undue certainty to forward-looking statements.