(TheNewswire)
Vancouver, British Columbia – TheNewswire - May 30, 2024 – RacklaMetals Inc. (TSXV: RAK) (the “ Company ”) is pleased to announce the closing of a first tranche of its previouslyannounced private placement financing. The Company has issued8,333,333 charity flow-through units at a price of $0.21 per unit, forproceeds of $1.75 million.
Each unit consists of one commonshare of the Company and one warrant whichentitles the holder to purchase one additional common share of theC ompany at a price of $0.20 until May 30, 2025. Each common share qualifies as a “flow-through share” within themeaning of subsection 66(15) of the Income Tax Act (Canada). The securities issued aresubject to a resale restriction until October 1, 2024. This trancheof the financing remains subject to the final approval of the TSXVenture Exchange.
The proceeds received by the Company from this trancheof the financing will be used to incur eligible “Canadianexploration expenses” that qualify as Canadian exploration expensesand “flow-through mining expenditures” for the purposes of the Income Tax Act (Canada) on or before December 31, 2025 (or such other periodas may be permissible under applicable tax legislation). Suchproceeds will be renounced in favour of the purchasers with aneffective date of not later than December 31, 2024, in the aggregateamount of not less than the total amount of the gross proceeds raisedunder the FT Offering and CFT Offering.
Management proposes to use the proceeds of this trancheof the financing for conducting exploration and drilling on theCompany’s Tombstone Gold Belt properties within the Selwyn Basin inthe coming year.
The Company expects to close the regular FT and HDtranches of the financing next week. Due to significant interest,the total to be raised in the financing has been increased to $4.65million.
This press release does notconstitute an offer to sell or a solicitation of an offer to buy anyof the Offered Securities in the United States or the U.S. persons. The Offered Securities have not been and will not be registeredunder the U.S. Securities Act or any state securities laws and may notbe offered or sold within the United States or to U.S. Persons unlessregistered under the U.S. Securities Act and applicable statesecurities laws or an exemption from such registration isavailable.
About Rackla
Rackla Metals Inc. (TSX-V: RAK) is a Vancouver, Canadabased junior gold exploration company. The Company is targetingReduced Intrusion-Related Gold Systems (RIRGS) mineralization on thesoutheastern part of the Tombstone Gold Belt in eastern Yukon andwestern Northwest Territories. Management believes that this area,which is underexplored for RIRGS deposit types, has the potential tobe the next frontier for their discovery.
ON BEHALF OF THE BOARD
Simon Ridgway,
CEO and Director
Tel: (604) 8 01-5432; Fax: (604)662-8829
Email: info@goldgroup.com
Website: www.racklametals.com
Neither the TSX Venture Exchange norits Regulation Services Provider (as that term is defined in thepolicies of the TSX Venture Exchange) accept responsibility for theadequacy or accuracy of this news release.
Forward-Looking Information
Certain statements contained in thisnews release constitute forward-looking statements within the meaningof Canadian securities legislation. All statements included herein,other than statements of historical fact, are forward- lookingstatements and include, without limitation, statements about thefinancing; the receipt of TSX Venture Exchange final approval of thefinancing; the use of proceeds from the financing; the ability of theCompany to incur Canadian exploration expenses with the proceeds fromthe financing; the expected closing of the final tranche of thefinancing; the Company’s future exploration activities; and generalbusiness and economic conditions. Often, but not always, these forwardlooking statements can be identified by the use of words such as“estimate”, “estimates”, “estimated”, “potential”,“open”, “future”, “assumed”, “projected”, “used”,“detailed”, “has been”, “gain”, “upgraded”,“offset”, “limited”, “contained”, “reflecting”,“containing”, “remaining”, “to be”, “periodically”, orstatements that events, “could” or “should” occur or beachieved and similar expressions, including negativevariations.
Forward-looking statements involveknown and unknown risks, uncertainties and other factors which maycause the actual results, performance or achievements of the Companyto be materially different from any results, performance orachievements expressed or implied by forward-looking statements. Suchuncertainties and factors include, among others, whether final stockexchange approval to the financing will be obtained and the finaltranche of the financing will be completed as planned; changes ingeneral economic conditions and financial markets; the Company or anyjoint venture partner not having the financial ability to meet itsexploration and development goals; risks associated with the resultsof exploration and development activities, estimation of mineralresources and the geology, grade and continuity of mineral deposits;unanticipated costs and expenses; and such other risks detailed fromtime to time in the Company’s quarterly and annual filings withsecurities regulators and available under the Company’s profile onSEDAR+ at www.sedarplus.ca . Although the Company has attempted to identify important factorsthat could cause actual actions, events or results to differmaterially from those described in forward-looking statements, theremay be other factors that cause actions, events or results to differfrom those anticipated, estimated or intended.
Forward-looking statements containedherein are based on the assumptions, beliefs, expectations andopinions of management, including but not limited to: that finalstock exchange approval to the financing will be obtained and that thefinal tranche of the financing will be completed as planned; that theCompany’s stated goals and planned exploration activities at itsproperties will be achieved; that there will be no material adversechange affecting the Company, its properties or its securities; andsuch other assumptions as set out herein. Forward-looking statementsare made as of the date hereof and the Company disclaims anyobligation to update any forward-looking statements, whether as aresult of new information, future events or results or otherwise,except as required by law. There can be no assurance thatforward-looking statements will prove to be accurate, as actualresults and future events could differ materially from thoseanticipated in such statements. Accordingly, investors should notplace undue reliance on forward-looking statements.
NOT FORDISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES OR FOR RELEASE,PUBLICATION, DISTRIBUTION OR DISSEMINATION DIRECTLY, OR INDIRECTLY, INWHOLE OR IN PART, IN OR INTO THE UNITED STATES
Copyright (c) 2024 TheNewswire - All rights reserved.