Happy Creek Completes $ 3,013,707 Finance with $1,645,500 Second Tranche of Private Placement
July 11, 2017 – Vancouver, British Columbia – Happy Creek Minerals Ltd. (TSX-V:HPY, the “Company”) is pleased to announce the completion of the second tranche of its non- brokered financing on July 10, 2017, which was initially announced May 30th 2017.
The Company has completed the second tranche of a non-brokered private placement for gross proceeds of $1,645,500 through the sale of 2,150,000 common shares at a price of
$0.20 per share and 4,675,000 flow-through shares at a price of $0.26 per flow-through share. The shares will be subject to resale restrictions until November 8, 2017.
The Company completed the first tranche of the non-brokered private placement on July 5, 2017 and has raised aggregate proceeds of $3,013,707 through the sale of a total of 6,240,035 common shares at a price of $0.20 per share and 6,791,153 flow-through shares at a price of $0.26 per flow-through share.
The proceeds from the sale of flow-through shares will be used to incur qualified exploration expenses in accordance with Canadian Income Tax provisions and together with proceeds of the sale of non-flow through shares, will be used to conduct primarily trenching and drilling on the Company’s Fox tungsten property, B.C. and for general working capital.
A finder’s fee to qualified agents is payable in connection with the second tranche of the financing totalling $58,310 in cash and 222,000 broker warrants. The aggregate finder’s fee payable to qualified agents in connection with the first and second tranches total $134,050 in cash and 524,171 broker warrants. Each broker warrant is exercisable into one common share of the Company at a price of $0.30 for a period of two years.
In connection with the non-brokered private placement, the Company issued 765,035 common shares to persons that are directors or senior officers of the Company. The Company has determined that exemptions from the various requirements of TSX Venture Exchange Policy 5.9 and Multilateral Instrument 61-101 (“MI 61-101”) are available for the issuance of the common shares to the related parties. The Company relied on Section 5.5(c) of MI 61-101 for an exemption from the formal valuation requirement on the basis that the transaction is a distribution of securities for cash, and Section 5.7(b) of MI 61-101 for an exemption from the minority approval requirement as the fair market value of the transaction is not more than $2,500,000. The Company did not file a material change report more than 21 days in advance of the closing of the Offering, which the Company deems reasonable and necessary in the circumstances as the closing date of the Offering had not been established at that time and the Company wished to complete the Offering in an expeditious manner.
On behalf of the Board of Directors,
“David E Blann”
David E Blann, P.Eng.
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.
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