MMMRF - Mammoth Announces $2.0 Million Institutional Backed Private Placement Financing
(TheNewswire)
Toronto, Canada – TheNewswire - May 25, 2021 - Mammoth Resources Corp.(TSXV:MTH), (OTC:MMMRF) (the “Company”, or “Mammoth”) ispleased to announce a non brokered private placement financing (the“Private Placement”) comprising up to 14,300,000 units (the“Units”) at a price of $0.14 per Unit for gross proceeds of$2,002,000, the Unit offering price being the equivalent of the 5, 10and 15-day volume weighted average price of the Company’s commonshares traded on the TSX Venture Exchange (the “Exchange”). Fundsmanaged by institutional together with high net worth investors haveagreed to purchase 10,500,000 Units in the PrivatePlacement.
Each Unit of the Private Placement willconsist of one common share of the Company (the “Common Share”)and one share purchase warrant (the “Warrant”). Each Warrant willentitle the holder to purchase one additional Common Share for aperiod of 18 months from closing of the Private Placement at a priceof $0.21 and if commencing on the date that is four months after theclosing date, the closing price of a Common Share on the Exchange ishigher than $0.25 for 20 consecutive trading days, based on the volumeweighted average price on daily closing, then on the date that is the20th consecutive trading day (the “Acceleration Trigger Date”) theexpiry date of the Warrants will be accelerated to the date that is 30business days after the Acceleration Trigger Date provided theCompany, within three trading days of the Acceleration Trigger Date,issues a news release announcing the acceleration of the expiry dateand delivers or sends by electronic transmission a copy of such newsrelease to the Warrant holders.
Proceeds from this Private Placementwill be used primarily to fund diamond drilling on the Company’s100% owned Tenoriba gold-silver, with copper high sulphidation projectin the prolific Sierra Madre precious metal belt, Mexico. This drillprogram is planned to commence within weeks of the closing of thisPrivate Placement. The drill contractor that will be contracted toperform this diamond drilling has agreed to accept up to 30% of thecontractor cost of this program in shares in this PrivatePlacement.
Thomas Atkins, President and CEO ofMammoth commented on the Private Placement, stating: “The price and unit structure of thisfinancing is clearly attractive with the company having gained thecommitment of institutional and high net worth investors comprisingthe vast majority of the financing. We anticipate a quick closing ofthis financing which will enable the drill contractor to beginpreparations to mobilize the drill rig to site with drilling to beginwithin weeks of closing. At the offering price, and with the majorityof the funds from this financing directed towards this work,Mammoth’s market capitalization will still remain approximatelyequal to amounts spent at Tenoriba. We’re confident the work plannedfrom the proceeds from this financing will enhance the company’sshare value as we begin to deliver results from this drilling as wetest compelling drill targets over almost 5 kilometres of knownsurface mineralization coinciding with attractive geophysicalfeatures, and in a number of instances adjacent to prior, potentiallyeconomical gold-silver drill hole intervals at Tenoriba. We intend torelease results from additional 3D geophysical modelling and identifyadditional drill targets in the near future as we advance closing ofthe financing and segue to drilling. Mammoth looks forward toannouncing results from these activities.”
This Private Placement is available toaccredited investors. Securities issued under this Private Placement will be subject to afour-month hold period. In accordance with the requirements of theInvestment Dealer Exemption, the Company confirms there is no materialfact or material change related to the Company which has not beendisclosed. The Private Placement is subject to receipt of all requiredregulatory and Exchange approvals. The Company may pay a finder's feeson a portion of the Private Placement in accordance with applicablesecurities laws and the policies of the TSX VentureExchange.
Anyone interested in participating inparticipating in this financing are encouraged to contact ThomasAtkins, President and CEO of Mammoth at: tr_atkins@rogers.com or by telephone at: 416 509-4326.
About MammothResources:
Mammoth Resources (TSX-V: MTH) is aprecious metal mineral exploration Company focused on acquiring anddefining precious metal resources in Mexico and other attractivemining friendly jurisdictions in the Americas. The Company holds a100% interest (subject to a 2% net smelter royalty purchasable anytimewithin two years from commencement of commercial production for US$1.5million) in the 5,333 hectare Tenoriba gold property located in theSierra Madre Precious Metal Belt in southwestern Chihuahua State,Mexico. Mammoth is seeking other opportunities to option explorationprojects in the Americas on properties it deems to host above averagepotential for economic concentrations of precious metalsmineralization.
To find out more about Mammoth Resources and to sign upto receive future press releases, please visit the company's website at: www.mammothresources.ca ., or contact Thomas Atkins, President and CEO.
Neither the TSX Venture Exchange nor its RegulationServices Provider (as that term is defined in the policies of the TSXVenture Exchange) accepts responsibility for the adequacy or accuracyof this release.
Forward Looking Information: This news release maycontain or refer to forward-looking information. All information otherthan statements of historical fact that address activities, events ordevelopments that the Company believes, expects or anticipates will ormay occur in the future are forward-looking statements; examplesinclude the listing of its shares on a stock exchange and establishingmineral resources. These forward-looking statements are subject to avariety of risks and uncertainties beyond the Company's ability tocontrol or predict that may cause actual events or results to differmaterially from those discussed in such forward-looking statements.Any forward-looking statement speaks only as of the date on which itis made and, except as may be required by applicable securities laws,the Company disclaims any intent or obligation to update anyforward-looking statement, whether as a result of new information,future events or results or otherwise. Although the Company believesthat the assumptions inherent in the forward-looking statements arereasonable, forward-looking statements are not guarantees of futureperformance and, accordingly, undue reliance should not be placed onthese forward-looking statements due to the inherent uncertaintytherein.
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