Melkior Resources Closes Private Placement
Melkior Resources Inc. ("Melkior" or the "Company") (TSXV:MKR) (OTC:MKRIF) is pleased to announce it has closed a first tranche of a non-brokered flow-through and non-flow-through private placement (the "Private Placement") for gross proceeds of C$659,266, subject to final TSX Venture Exchange (the "TSXV") approval. $298,000 of the financing was provided by two directors of the Company. The Company expects to close a second tranche of flow-through shares at a price of $0.24 per common share in the amount of $150,000 by July 15th. The Company issued 2,663,609 common shares at a price of $0.24 per common share, with each such share issued as a "flow-through share" within the meaning of the Income Tax Act (Canada)(the "Tax Act").
The Company issued 100,000 common shares at a price of $0.20 per common share, with each such share issued as a "non-flow-through share".
Participation by insiders of the Company in the Private Placement constitutes a related party transaction as defined under Multilateral Instrument 61-101, Protection of Minority Security Holders in Special Transactions. Because the Company's shares trade only on the TSX-V, the issuance of the securities is exempt from the formal valuation requirements of Section 5.4 of MI 61-101 pursuant to Subsection 5.5(b) of MI 61-101 and exempt from the minority approval requirements of Section 5.6 of MI 61-101 pursuant to Subsection 5.7(b) of MI 61-101.
Proceeds of the Private Placement will be used to conduct further exploration on the Company's mineral properties. The Company did not issue finders' fees on this first tranche closing. A Finder's fee may be paid on gross proceeds of the second financing tranche, as permitted by securities laws.
All securities issued under the Private Placement will have a hold period of four months and a day from closing.
About Melkior Resources
Melkior Resources is an exploration stage resource company in world-class mining jurisdictions with a strong partner. Melkior's flagship Carscallen Project is being advanced by Agnico Eagle Mines Ltd. through an option agreement pursuant to which Agnico Eagle has the option (but not the obligation) to acquire up to a 75% interest to the Carscallen Project by spending $110 million on the Carscallen Project over a 10-year period. See the Company's news release dated September 28, 2020 for more information. Melkior, under 100% ownership, is focused on advancing its Genex, Val D'Or, White Lake and Maseres Projects. Agnico Eagle also owns approximately 6% of the issued and outstanding common shares of Company.
ON BEHALF OF THE BOARD
Jonathon Deluce, CEO
For more information, please contact:
E-mail: info@melkior.com
Tel: 226-271-5170
The reader is invited to visit Melkior's web site www.melkior.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.