Happy Creek Completes Final Tranche of Private Placement
January 25, 2019 – Vancouver, British Columbia – Happy Creek Minerals Ltd. (TSX-V:HPY, the “Company”) is pleased to announce the completion of the second and final tranche of its previously announced non-brokered financing for gross proceeds of $72,450 through the sale of 483,000 common shares at a price of $0.15 per share.
Together with the first tranche of the non-brokered private placement closed on December 28, 2018, the Company has raised aggregate proceeds of $245,250 through the sale of a total of 483,000 common shares at a price of $0.15 per share and 864,000 flow-through shares at a price of $0.20 per flow-through share.
In connection with the closing of the second tranche of the private placement, the Company paid a finder’s fee of $346.50 in cash and issued 1,980 finder’s warrants. Each finder’s warrant is exercisable into one common share of the Company at a price of $0.30 for a period of two years.
The net proceeds from the sale of flow-through shares will be used to conduct mineral exploration work that qualifies as Flow Through Exploration Expense under the Income Tax Act (Canada), and together with proceeds of the sale of non-flow through shares, will be used for general working capital and additional exploration, engineering or development work contemplated by the Company. Exploration expenditures will be primarily focussed on the Company’s Fox tungsten and Highland Valley copper properties.
The closing of the private placement is subject to approval of the TSX Venture Exchange. The securities issued in connection with the second tranche of the private placement are subject to a four month hold period, which will expire on May 24, 2019.
In connection with the first tranche of the non-brokered private placement, the Company issued 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 these 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 was a distribution of securities for cash, and Section 5.7(1)(b) of MI 61-101 for an exemption from the minority approval requirement as the fair market value of the transaction was not more than $2,500,000.
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.
You can view the Previous News item:November 27th, 2018, Happy Creek Announces a Private Placement Financing
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