Business
Murchison Closes Oversubscribed Flow-Through Private Placement
THIS NEWS RELEASE IS INTENDED FOR DISTRIBUTION IN CANADA ONLY AND IS NOT INTENDED FOR DISTRI...
About this update from Murchison Minerals Ltd
[{"type":"text","content":"Murchison Closes Oversubscribed Flow-Through Private PlacementTHIS NEWS RELEASE IS INTENDED FOR DISTRIBUTION IN CANADA ONLY AND IS NOT INTENDED FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR DISSEMINATION IN THE UNITED STATESTORONTO, ON / ACCESSWIRE / December 31, 2020 / Murchison Minerals Ltd. (\"Murchison\" or the \"Company\") (TSXV:MUR) is pleased to announce that further to its press release dated December 12, 2020, the Company has closed an oversubscribed non-brokered private placement (the \"Private Placement\") through the issuance of 15,986,889 common shares of the Company issued on a flow‐through basis (each, a \"FT Share\") at a price of $0.095 per FT Share for gross proceeds of $1,518,754.The FT Shares qualify as a \"flow-through share\" for purposes of the Income Tax Act (Canada)(the \"Tax Act\"). In connection with the Private Placement, the Company paid an aggregate cash finders' fees of $73,410 and issued an aggregate of 502,733 finders' warrants. Each finder's warrant entitles the holder to acquire one common share of the Company at a price of $0.12 per share until December 31, 2021. The Private Placement is subject to final approval from the TSX Venture Exchange. All securities issued pursuant to the Private Placement are subject to a four month hold period from the date of issue in accordance with applicable securities laws. The Company will incur \"Canadian exploration expenses\" as defined in subsection 66.1(6) of the Tax Act in an amount equal to the gross proceeds from the issuance of the FT Shares on its Brabant Lake VMS project in Saskatchewan.A director of the Company subscribed for 4,500,000 FT Shares pursuant to the Private Placement, which participation constituted a \"related party transaction\" as defined under Multilateral Instrument 61-101 (\"MI 61-101\"). The Company is relying on the exemptions from the valuation and minority shareholder approval requirements of MI 61-101 contained in sections 5.5(a) and 5.7(1)(a) of MI 61-101, as the fair market value of the participation in the Private Placement by the director does not exceed 25% of the market capitalization of the Company, as determined in accordance with MI 61-101. The Company did not file a material change report in respect of the related party transaction at least 21 days before the closing of the Private Placement, which t...