VANCOUVER, BC / ACCESSWIRE / July 8, 2022 / Tectonic Metals Inc. (TSXV: TECT)(OTCQB: TETOF)(FSE: T15B) (there “Company” Where “Tectonic“) announces that the Company has closed the second tranche of the previously announced non-brokered private placement financing on April 25, 2022, by issuing 7,183,339 units of the Company (the “Units“) at a price of CA$0.06 per unit, for total gross proceeds of CA$431,000 (the “Offer“).

Tectonic President and CEO Tony Reda commented, “As we close our financing, I am honored by the confidence that our investors have placed in us despite the current difficult market conditions. Their continued support is a recognition of the exciting opportunities we have at our properties in Alaska and reflects our own enthusiasm for the compelling goals we have identified for the 2022 field season. Thanks to our investors and the hard work and dedication of the Tectonic team, exercises are now running at Seventymile. We look forward to reporting on our progress as soon as possible. »

The offering

Each Unit consists of one ordinary share in the capital of Tectonic (oneOrdinary share“) and one-half common share purchase warrant of the Company (each whole warrant, one “To guarantee“). Each warrant is exercisable into one common share at an exercise price of C$0.10 per common share and expires two years from the closing date of the offering.

The Warrants are subject to an acceleration feature that if the volume weighted average trading price of the Common Shares on the TSX Venture Exchange (the “TSXV“) is CA$0.20 or more during a period of twenty (20) consecutive trading days (whether or not trading occurs on all such days), Tectonic shall have the right to advance the expiry date of the warrants 30 days from the date of issuance of a press release from Tectonic announcing the accelerated exercise period.

The net proceeds of the Offering will be used to advance the Company’s projects and for general working capital.

All securities issued under the offering are subject to a hold period of four months and one day. The Offering is subject to certain conditions, including, but not limited to, the receipt of all necessary approvals, including final approval from the TSXV.

The Offering and the issuance of the Units referenced in this press release involve related parties (as that term is defined in NI 61-101 – Protection of holders of minority securities in special transactions (“MI 61-101“)) and therefore constitutes a related party transaction within the meaning of NI 61-101. This transaction is exempt from the formal valuation and minority shareholder approval requirements of NI 61-101 pursuant to sections 5.5(b) and 5.7(1)(b) of NI 61-101, as the Company is not listed or quoted on one of the stock exchanges or markets listed in Section 5.5(b) of NI 61-101, and the fair market value of the securities to be distributed and the consideration to be received for the securities under the ‘Offer does not exceed 25% of the Company’s market capitalization.

In connection with the Offer and in accordance with the policies of the TSXV, the Company paid Gerhard Merkel cash finder’s fees totaling C$24,900.02 and issued to the finder 415,000 equity warrants. non-transferable common shares (each, one “Finder’s Warrant“). Each finder’s warrant is exercisable into one common share at an exercise price of C$0.10 per common share and expires July 8, 2024.

This press release does not constitute an offer to sell or the solicitation of an offer to buy and there will be no sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under securities laws. of such jurisdiction. This press release does not constitute an offer to sell or the solicitation of an offer to buy securities in the United States. The securities offered have not been, and will not be, registered under the United States Securities Act of 1933, as amended, or under any United States securities law, and such securities may not be offered or sold in the United States. absent registration under U.S. federal and state securities laws or an applicable exemption from such U.S. registration requirements.

Grant of stock options

The Company announces that it has granted a total of 3,050,000 incentive stock options to directors, officers and key consultants to purchase up to 3,050,000 common shares in the capital of Tectonic. The incentive stock options have an exercise price of $0.10 per share, a 100% premium to the previous day’s closing price.

To learn more about Tectonic, please click here.

On behalf of Tectonic Metals Inc.,
Tony Reda
President and CEO

For further information about Tectonic Metals Inc. or this press release, please visit our website at or contact Bill Stormont, Investor Relations, toll-free at 1.888.685.8558 or by email at [email protected].

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.

THE SOURCE: Tectonic Metals Inc.

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