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Olivut Resources Announces Closing of Private Placement of Common Shares
TORONTO, Aug. 22, 2023 (GLOBE NEWSWIRE) -- Olivut Resources Ltd. (“Olivut” or the “Company”) (TSXV:OLV) is pleased to announce that the Company has closed a non
About this update from Olivut Resources Ltd.
[{"type":"text","content":" TORONTO, Aug. 22, 2023 (GLOBE NEWSWIRE) -- Olivut Resources Ltd. (“Olivut” or the “Company”) (TSXV:OLV) is pleased to announce that the Company has closed a non-brokered private placement (the “Private Placement”) comprised of 6,100,000 common shares (the “Common Shares”) for proceeds of $305,000 at a price of $0.05 per Common Share. The Common Shares are subject to resale restrictions pursuant to applicable securities laws requirements and will not be freely tradable until four months after the date of issue. Olivut will use the proceeds of the Private Placement for exploration and general corporate purposes. The Company paid a finder’s fee of $2,500, equal to 5% of certain gross proceeds of the Private Placement, to an individual. Closing of the Private Placement is subject to final approval from the TSX Venture Exchange. One insider participated in the Private Placement, thereby making the Private Placement a “related party transaction” as defined under Multilateral Instrument 61-101 (“MI 61-101”). Ms. Leni Keough, President and Chief Executive Officer and a director of the Company, purchased 1,000,000 Common Shares and owns or controls 9,303,928 common shares or approximately 12.4% of the total common shares issued and outstanding after completion of the Private Placement. The Private Placement was unanimously approved by the directors of the Company, with Ms. Keough disclosing her interest and abstaining from voting with respect thereto. The Private Placement was exempt from the formal valuation and minority shareholder approval requirements of MI 61-101 as neither the fair market value of any Common Shares issued to or the consideration paid by such persons exceeded 25% of the Company’s market capitalization. Olivut is a diamond exploration company with a 100% mineral interest in the HOAM Project (the “HOAM Project”) and a 50% interest in the Seahorse Project (the Seahorse Project”), both projects being located in Canada’s Northwest Territories. The HOAM Project has numerous drill ready targets. The Company considers the Seahorse Project to have the potential to host diamondiferous kimberlite bodies of significant size and other potential mineral deposits, based on a combination of the previously reported recent caustic fusion results; REE and titanium oxide results; 2019 program results; favourable diamond inclusio...