Secova Metals Completes $2.5M Non-Brokered Financing and Expands its Eagle River Project in the Windfall Lake District of Quebec
VANCOUVER, BC / ACCESSWIRE / February 21, 2017 / Secova Metals Corp. (TSX-V: SEK) (FSE: N4UN) (OTC PINK: SEKZF) ("Secova" or the "Company") is pleased to announce that it has increased its previously published $500,000 non-brokered private placement (dated February 6, 2017, the "Financing") to a total of $2,500,000 Non-Flow-Through Units ("NFT Units"), which it has now closed pending exchange approval. The Company is also pleased to announce that it has increased its land position within the Windfall Lake district by acquiring 1106632 B.C. Ltd., a private B.C. Company which sole asset is 18 claims or 1,018 contiguous hectares adjacent to Secova's Eagle River project, which is on-trend to the Windfall Lake, Urban Barry, and the Gladiator gold projects.
Secova's President, Morgan Good, commented, "We're extremely pleased to have had such high demand for this financing. We've added countless new investors, many internationally based, to further improve our growing distribution and overall support for the company and its developments. The Windfall Lake/Urban Barry area of Quebec has recently garnered significant attention from the resource investment community. Since February 6th, 2017, three companies, which include Osisko Mining (TSX: OSK), Bonterra Resources (TSX-V: BTR), and Beaufield Resources (TSX-V: BFD), announced and even increased all their brokered financings for more than $70M accumulatively, and all for projects that are adjacent and/or on-trend to Secova's Eagle River Project. The Windfall Lake district is setup to become the next major gold mining district in Canada and with Secova's management team having intimate knowledge of the Windfall Lake project, familiarity with the region, relationships with it's stakeholders and with the experienced service providers, we feel the Company is well positioned to become a recognized player in the region."
Expanded Eagle River Project
Secova has acquired 18 claims, totalling 1,018 hectares, for a purchase price of 5 million common shares of the Company. The new claims lay on the central and southern portion of the Company's existing Eagle River Project, making the project one complete contiguous land position. This acquisition has increased the Eagle River Project by approximately 23% from its original size and it now totals 5,372 hectares, all adjacent and/or on-trend to the Windfall Lake gold deposit.
Non-Brokered Financing
Subject to acceptance of the TSX Venture Exchange, the Company will close a non-brokered financing of 50 million NFT Units at $0.05 for proceeds of $2,500,000. The NFT Units will consist of one common share and one share purchase warrant (a "Warrant"). Each Warrant will entitle the holder to purchase one additional common share of the Company at a price of $0.08 per common share for a period of 24 months from closing.
In connection with the completion of this financing, the Company will pay $42,920 and issue 2,639,500 common shares and 3,497,900 warrants (the "Broker Warrants") to certain finders' who introduced subscribers to the financing. The Broker Warrants will entitle the holder to purchase one additional common share of the Company at a price of $0.05 per common share for a period of 12 months from closing. All securities issued pursuant to the financing will be subject to a statutory four-month and one day hold period.
The proceeds received from the private placement will be used to commence the exploration program at the Duvay/Chenier claims in Quebec. The Company will also utilize proceeds to begin exploration work on the Eagle River project in the Windfall Lake district, as well as corporate development, general and administrative costs.
The acquisition and private placement transactions contemplated herein are subject to final TSX Venture Exchange approval.
About Secova Metals Corp.
Secova Metals Corp. is a Canadian gold exploration company focused on building a strong asset base through exploration of undervalued gold projects in Canada. Management has demonstrated expertise in advancing gold exploration projects into acquisition targets, most notably in the province of Quebec. Secova has the exclusive right and option to acquire from Tres-Or Resources Inc. ("Tres-Or"), an undivided 65% right, title, and interest in the contiguous Duvay and Chenier Gold Projects. Secova can earn up to 90% of the property (an additional 25% ownership) by funding a pre-feasibility study after the initial exploration expenditures to bring the property towards production. The Company has a total contiguous land package of 174 claims, covering over 7,766 hectares (17,458 acres) of land. Duvay/Chenier is located in the Abitibi gold belt, one of Quebec's premier mining jurisdictions. The Company has plans to advance the development of Duvay/Chenier, as well as seek other avenues of growth through acquisition and mergers. The Company also has 100% ownership of the Eagle River project which is adjacent to and on-trend to several gold projects in the Windfall Lake district of Urban Barry in Quebec. Secova Metals trades on the TSX Venture under the symbol SEK, in the United States under the symbol SEKZF, and on the Frankfurt Exchange as 4NUN.
For more information on Secova Metals Corp., please contact Morgan Good, Secova's President, at morgan.good@secovametals.com and Tel: +1 604-715-4751, or visit the website at www.secovametals.com for past news releases, media interviews, and opinion-editorial pieces by CEO and Chairman, Brad Kitchen.
On Behalf of the Board of Directors,
Secova Metals Corp.
"Morgan Good"
President and Director
Tel: +1 604-715-4751
info@secovametals.com
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.
This press release contains "forward-looking information" that is based on the Company's current expectations, estimates, forecasts, and projections. This forward-looking information includes, among other things, statements with respect to the Company's exploration and development plans. The words "will," "anticipated," "plans," or other similar words and phrases are intended to identify forward-looking information. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the Company's actual results, level of activity, performance, or achievements to be materially different from those expressed or implied by such forward-looking information.
SOURCE: Secova Metals Corp.