Brixton Metals Corporation (TSX VENTURE: BBB) (the “Company” or “Brixton“) is pleased to announce that it has closed the first tranche of its previously announced non-brokered private placement financing (the “Private Placement“). The Private Placement consisted of the sale of 6,233,000 units (“Units“) at a price of $0.10 per Unit and 4,000,000 flow-through shares of Brixton (the “FT Shares“) at a price of $0.10 per FT Share for aggregate gross proceeds of $1,023,300. Each Unit consists of one common share and one transferable common share purchase warrant with each Warrant exercisable by the holder into one common share of the Company at a price of $0.15 per share for a period of 36 months from the closing date.
Mr. Robert McEwen (Evanachan Limited) and CMP 2016 Resource Limited Partnership have subscribed for 2,500,000 Units and 2,500,000 FT shares respectively. At closing (and after the share issuances described below are completed), Brixton will have 25,589,926 shares outstanding on an undiluted basis. Mr. McEwen becomes Brixton’s largest shareholder holding 13.7%, CMP holds 9.7%, Hecla Mining holds 8.8% and management and Directors collectively hold 15.8% of the Company.
The offering shall remain open for a second closing until April 29, 2016 under the same terms including the overallotment for a combined total amount of $1,150,000 (unless the Company’s Board of Directors determine to increase the size of the Private Placement as a result of further expressions of interests).
The proceeds from the Private Placement will be used to fund exploration activities at the Company’s Langis and Thorn project as well as for general corporate and administrative expenses.
Finder’s fees totalling $10,700 in cash, 157,200 in common shares and 439,200 of Finders Warrants were paid by the Company in accordance with the policies of the TSX Venture Exchange (“TSXV“). All securities issued are subject to a four month and one day hold period. In the event that the Company’s common shares trade at a closing price on the Exchange of greater than $0.25 per share for a period of 20 consecutive trading days at any time after the closing date, the Company may accelerate the expiry date of the Warrants by giving notice to the holders thereof and in such case the Warrants will expire on the 30th day after the date on which such notice is given by the Company.
Property Acquisitions and Other Transactions
The Company is pleased to announce that it has entered into purchase agreements with two landowners in the area of its Langis property to further consolidate its land position. The Company proposes to issue 250,000 common shares (the “Property Shares“).
The Company also announces that, in order to preserve cash on-hand in order to fund the Company’s exploration activities, it has entered into share for debt settlement agreements with various creditors to settle $11,000 in outstanding debt. The Company proposes to issue 110,000 common shares at a deemed price of $0.10 per share (the “Settlement Shares“).
The issuance of the Property Shares and the Settlement Shares are subject to TSXV approval and, once issued, will be subject to a four month and one day hold period.
About Brixton Metals Corporation
Brixton is a Canadian exploration and development company focused on the advancement of its projects toward feasibility. Brixton wholly owns two exploration projects, the Langis Silver project and the Thorn gold-silver project.
The Langis project, including other lands in the Cobalt Camp is about 3,200 hectare in size. The project is located 500 km north of Toronto, Canada. The high-grade silver mineralization occurs as steeply-dipping veins within any of the three main rock types; Archean volcanics, Coleman Member sediments and Nipissing diabase. The unmined Langis zone intersected by drilling: 19,229 g/t Ag over 0.49 metres, 1,550 g/t Ag over 9.4 metres and 1,262.80 g/t Ag over 3.9 metres. This area will be the focus for follow up exploration work. The Cobalt camp historically has produced over 420 million ounces of silver with some reported assays reaching 255,146 g/t Ag or 9,000 oz/t Ag over 0.36 metres. Please click on link: https://youtu.be/8EvToTSCZTk
The 28,000 hectare Thorn Project is located in the Sutlahine River area of northwestern British Columbia, Canada, approximately 105 km ENE from Juneau, AK. The Thorn project hosts a district scale Triassic to Cretaceous volcano-plutonic complex with several styles of mineralization related to porphyry and epithermal environments. Targets include sediment hosted gold-silver, high-grade Ag-Au-Pb-Zn bearing diatreme-breccia, high-grade Au-Ag-Cu veins and volcanic hosted structurally controlled gold-silver. Brixton has established a maiden inferred resource of 21.5Moz AgEq from 7.4 Mt at 89.75 g/t AgEq. Further information regarding the resource estimates, can be found on the in the Company’s technical report prepared by SRK Consulting dated December 12, 2014 and filed on SEDAR. Read more at http://brixtonmetals.com/thorn-technical-reports/
Brixton Metals Corporation shares trade on the TSX-V under the ticker symbol BBB. For more information about Brixton please visit our website at www.brixtonmetals.com.
On Behalf of the Board of Directors
Mr. Gary R. Thompson, Chairman and CEO
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.
Information set forth in this news release may involve forward-looking statements under applicable securities laws. Forward-looking statements are statements that relate to future, not past, events. In this context, forward-looking statements often address expected future business and financial performance, and often contain words such as “anticipate”, “believe”, “plan”, “estimate”, “expect”, and “intend”, statements that an action or event “may”, “might”, “could”, “should”, or “will” be taken or occur, including statements that address potential quantity and/or grade of minerals, potential size and expansion of a mineralized zone, proposed timing of exploration and development plans, or other similar expressions. All statements, other than statements of historical fact included herein including, without limitation, the anticipated issuance of the Property Shares or the Settlement Shares, TSXV final approval for the Private Placement and approval for the issuance of the Property Shares or the Settlement Shares, use of proceeds and the exploration potential of the Langis property based on historical information, resources estimates on the Thorn Project are forward looking statements. By their nature, forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements, or other future events, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, the following risks: the need for additional financing; operational risks associated with mineral exploration; fluctuations in commodity prices; title matters; and the additional risks identified in the annual information form of the Company or other reports and filings with the TSXV and applicable Canadian securities regulators. Forward-looking statements are made based on management’s beliefs, estimates and opinions on the date that statements are made and the Company undertakes no obligation to update forward-looking statements if these beliefs, estimates and opinions or other circumstances should change, except as required by applicable securities laws. Investors are cautioned against attributing undue certainty to forward-looking statements.