TIMMINS, ON, July 24, 2020 /CNW/ - Moneta Porcupine
Mines Inc. (TSX: ME) (OTC: MPUCF) (XETRA: MOP) ("Moneta" or
the "Company") announced the closing of its oversubscribed
non-brokered private placement.
The Company issued 15,036,486 common shares at $0.14 per share ("Common Shares") and 19,997,662
common shares at $0.21 issued on a
flow-through basis ("Flow Through Shares"), for aggregate gross
proceeds of $6,304,617 (the
"Placement").
Gary O'Connor, CEO and Chief
Geologist of Moneta commented, "The strong institutional interest
in Moneta reflects the exceptional exploration potential we have
identified on our flagship Golden Highway. With the closing of the
financing, we will now expand our exploration program to accelerate
the increase in our gold resource base. We are pleased that Mr.
Eric Sprott and other existing
institutional shareholders have shown continued support in
increasing their ownership interest in the Company and we welcome
our new institutional investors."
The proceeds from the Flow Through Shares will be used to incur
Canadian exploration expenditures that are "flow-through mining
expenditures", as defined in the Income Tax Act (Canada), on the Company's Golden Highway
project, which will be renounced to the subscribers with an
effective date no later than December 31,
2020. The proceeds from the Common Shares will be used for
exploration expenditures and general working capital
purposes.
Mr. Eric Sprott subscribed to
6,428,600 shares in the private placement increasing his
shareholding in Moneta to 34,299,055, or 9.9% of the total shares
outstanding. An account managed by Dundee Goodman Merchant Partners
also subscribed to 4,800,000 shares in the private placement.
Finders fees were paid in the amount of $287,447 in cash and 2,002,192 broker warrants
exercisable at $0.21 and expiring
twenty four months following closing. Paradigm Capital, Dundee
Goodman Merchant Partners, XIII Capital and Industrial Alliance
Securities acted as advisors to the Company. The Placement is
subject to a standard four month hold period and final regulatory
approval.
About Moneta
The Company holds a 100% interest in 6 core gold projects
strategically located along the Destor-Porcupine Fault Zone in the
Timmins Gold Camp with over 85 million ounces of past gold
production. The projects consist of the Golden Highway,
North Tisdale, Nighthawk Lake,
DeSantis East, Kayorum and Denton
projects. The Golden Highway Project covers 12 kilometres of
prospective ground along the DPFZ of which 4 km hosts the current
43-101 mineral resource estimate comprised of an indicated resource
of 556,500 ounces gold contained within 3.82 Mt @ 4.53 g/t Au and a
total of 1,174,000 ounces gold contained within 8.47 Mt @ 4.31 g/t
Au in the inferred category at a 3.00 g/t Au cut-off. A preliminary
economic assessment on the South West deposit located within the
Golden Highway Project commenced in Q1, 2020. The results of the
PEA are due to be delivered later in 2020. The study will review
several development scenarios for the South West deposit which was
the subject of a resource update in November
2019.
The Company's public documents may be accessed at www.sedar.com.
For further information on the Company, please visit our website at
www.monetaporcupine.com or email us at
info@monetaporcupine.com.
SOURCE Moneta Porcupine Mines Inc.