ST. JOHN’S, Newfoundland and Labrador, June 08, 2021 (GLOBE NEWSWIRE) -- Vulcan Minerals Inc. (“the Company” - “Vulcan” TSX-V: VUL), has arranged a non brokered private placement for proceeds of $4,000,000 by way of issuance of 20,000,000 units at $0.20 consisting of one common share and one common share purchase warrant exercisable at $0.30 for a period 30 months following the close of the offering.
In the event that the closing price of the company’s shares on the TSX Venture Exchange is $0.50 or greater per share during any 10 consecutive trading day period at any time subsequent to four months and one day after the closing date, all warrants in this offering will expire at 4:00 pm Newfoundland time on the 30th day after the date on which the company provides notice of such accelerated expiry to the holders of the warrants.
Mr. Eric Sprott has indicated he will participate through the purchase of 10,000,000 units for proceeds of $2,000,000.
Patrick Laracy, President commented “We welcome Mr. Sprott as a significant shareholder in Vulcan given his enthusiasm for the mining potential of Newfoundland and Labrador. As a local company, we are very excited to be actively engaged in the exploration resurgence currently underway in the province. The proposed financing will expedite our exploration efforts.”
The proceeds of the offering will be used by the company for mineral exploration in Newfoundland and Labrador and for general working capital purposes. The securities issued will have a four-month hold period as per applicable regulations. The financing is subject to TSX Venture Exchange approval.
Vulcan Minerals is a precious and base metals exploration company based in St. John’s, Newfoundland. The company has strategic land positions in multiple active Newfoundland gold exploration and development belts. It also holds approximately 40% of the shares in Red Moon Resources Inc. (TSXV: RMK), an industrial minerals company that is carrying out a feasibility analysis on its Great Atlantic Salt deposit. Red Moon produces gypsum from its Ace Mine and owns the mineral rights to the Fischell’s Brook salt dome and other strategic salt claims. All these projects are in western Newfoundland.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. This release may contain certain forward-looking statements. Actual events or results may differ from the Company’s expectations. Certain risk factors beyond the Company’s control may affect the actual results achieved. Accordingly, readers are advised not to place undue reliance on forward-looking information. Except by law, the Company undertakes no obligation to publicly update or revise forward-looking information.