Vancouver, BC – Mountain Boy Minerals Ltd (“Mountain Boy” or the “Company”) (TSX.V: MTB; Frankfurt: M9UA) is pleased to announce that the previously announced $2 million financing at $0.25 per unit on June 15th, 2020 has been fully subscribed and the Company is increasing the financing by $1 million flow-through shares at $0.30 per flow-through share, for a total of $3 million. The financing is expected to close shortly.
Proceeds will be used for continuing exploration of the Company’s properties in the Stewart area of British Columbia’s Golden Triangle, including follow up work on the BA silver-dominant volcanogenic hosted massive sulphide (VHMS) project and planned drilling at the American Creek project.
The American Creek project is located in the highly prospective American Creek corridor of British Columbia’s Golden Triangle. The project, which has a rich mining history, is road accessible and only 20 kilometres north of the deep-water sea port of Stewart. Mountain Boy has consolidated a 2600-hectare property, compiled historic production and exploration information, and has a robust understanding of the geological setting.
The fully funded Phase 1 of the 2020 exploration program is underway (See News Release May 27th, 2020) and is designed to more precisely define drill targets for Phase 2 of the program. The drill program is intended to confirm the geological model that points to district-scale silver-gold potential. The emerging geological model holds that the various mineralized occurrences are surface expressions of a large geological system. That system is interpreted to be analogous to the Premier District, located immediately west of the American Creek property (See News Release May 21st, 2020).
Flow-through common shares are priced at $0.30 per common share (the “FT Offering”). The gross proceeds from the FT Offering of flow-through shares will be invested in eligible exploration expenditures in the province of British Columbia and certain British Columbia residents may be eligible for addition income tax deductions making this offering’s shares commonly referred to as “super” flow through shares.
Each unit will be comprised of one common share and one-half of one common share purchase warrant. Each full warrant shall be exercisable to acquire one common share at a price of $0.40 per warrant share for a period of 24 months from the date of closing.
All securities will be subject to a four-month hold period from the date of closing. The Company may pay finder’s fees and Insiders may be participating in this offering.
The offering is subject to the approval of the TSX Venture Exchange and applicable laws.
On behalf of the Board of Directors:
President & CEO
For further information, contact:
VP Corporate Development
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 news release may contain certain “forward looking statements”. Forward-looking statements involve known and unknown risks, uncertainties, assumptions and other factors that may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Any forward-looking statement speaks only as of the date of this news release and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise.