MMMRF - Mammoth Announces Closing of Private Placement Financing of Units for Gross Proceeds of $2.85 Million
(TheNewswire)
Toronto, Canada – TheNewswire - June 9, 2021 - Mammoth Resources Corp.(TSXV:MTH), (OTC:MMMRF), (the “Company”, or “Mammoth”) ispleased to announce closing its previously announced oversubscribed,non-brokered private placement financing of units (the “PrivatePlacement”) comprising up to 18,482,600 units (the “Units”) at aprice of $0.14 per Unit for gross proceeds of up to $2,587,564, thishaving been increased and Mammoth having been granted conditionalapproval by the TSX Venture Exchange (the “Exchange”) to20,349,965 Units for gross proceeds of $2,848,995. The expiry date onthe four-month hold period for the securities issued under thisprivate placement has been set as October 11, 2021. Upon providingthis announcement the Company anticipates receiving final approvalfrom the Exchange for closing this private placement.
Thomas Atkins, President and CEO ofMammoth commented on the closing and additional increase in the amountof the Private Placement, stating: “I’d previously announced that theplacement had been greeted by overwhelming enthusiasm and demand, andthat I’d tried to strike a balance between this demand, relative todilution and Mammoth having access to the capital it required toadvance exploration at Tenoriba. Overwhelming demand to participate inthe placement continued following that announcement and upon furtherreflection among Mammoth’s board it was decided to increase theamount of the placement by an additional $260,000. Even havingincreased the placement to this size, the Company was unable to meetdemand, this being at least partially evident in the strength of thecompany’s share price, it consistently exceeding the offering price,since our having announced the financing.
“Due to the time required toconclude this financing further advancements on the geophysicalinterpretation have been delayed, however we soon expect to completethis work. The remaining 3D geophysical modelling covers an additionalapproximately 1.5 kilometres for a total of over 4 kilometres ofInduced Polarization geophysics and up to a total of 6 kilometres ofMagnetometer geophysics. Once we’ve completed the 3D modelling,we’ll turn our attention to additional drill targeting in areascovered by the additional geophysics. Drill targeting will be incombination with historical surface and drill data over the entire 6-kilometre trend of gold-silver mineralization. It’s expected thatnews releases, reporting on the results of the remaining geophysicsand drill targeting, will be issued in the coming weeks as we completethis work.”
The Private Placement is subject toreceipt of all required regulatory and Exchange approvals. The PrivatePlacement was conducted in reliance upon British Columbia Instrument45-534 (the “Instrument”), which permits an issuer to distributesecurities to its existing shareholders, subject to the terms of theinstrument. The TSX Venture Exchange has granted approval for thisPrivate Placement and the increase in amount to20,349 , 965 Units for gross proceeds of $2, 848,995. The securities issued pursuant to the PrivatePlacement will be subject to a four-month hold period. Finders' feesof $14,710.00 in cash were paid on this Private Placement.
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.Logistical planning isalready underway working towards the commencement of the drill programin the coming weeks. Mammoth looks forward to further announcements asthese activities advance.
As previously announced each Unit of thePrivate Placement will consist of one common share of the Company (the“Common Share”) and one share purchase warrant (the“Warrant”). Each Warrant will entitle the holder to purchase oneadditional Common Share for a period of 18 months from closing of thePrivate Placement at a price of $0.21 and if commencing on the datethat is four months after the closing date, the closing price of aCommon Share on the Exchange is higher than $0.25 for 20 consecutivetrading days, based on the volume weighted average price on dailyclosing, then on the date that is the 20th consecutive trading day(the “Acceleration Trigger Date”) the expiry date of the Warrantswill be accelerated to the date that is 30 business days after theAcceleration Trigger Date provided the Company, within three trading days following theAcceleration Trigger Date, issues a news release announcing theacceleration of the expiry date and delivers or sends by electronictransmission a copy of such news release to the Warrantholders.
The Company would also like to announcethe issuance of 1,160,000 incentive options to executives anddirectors of the Company exercisable at the previous day closing shareprice of $0.17/share trading on the TSX Venture Exchange and an additional 300,000options exercisable at the same price to contractors to the Company.The term of these options and their exercise are governed under theterms of the Company’s Option Plan.
About Mammoth Resources:
Mammoth Resources (TSX-V: MTH) is a precious metalmineral exploration Company focused on acquiring and defining preciousmetal resources in Mexico and other attractive mining friendlyjurisdictions in the Americas. The Company holds a 100% interest(subject to a 2% net smelter royalty purchasable anytime within twoyears from commencement of commercial production for US$1.5 million)in the 5,333 hectare Tenoriba gold property located in the SierraMadre Precious Metal Belt in southwestern Chihuahua State, Mexico.Mammoth is seeking other opportunities to option exploration projectsin the Americas on properties it deems to host above average potentialfor 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 at: 416 509-4326.
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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