(TheNewswire)
Vancouver, BC - TheNewswire - December 22, 2022 - Rackla Metals Inc. (TSXV:RAK) (the “ Company ”) ispleased to announce that it has closed its previously announced private placementfinancing with the issuance of 11,365,000 flow-through units at $0.285each (the “ FTUnits ”) for gross proceeds of $3,239,025 (the“ FT Offering ”) and 1,250,000 hard-dollar units at a price of $0.20 each(the “ HD Units ”) for gross proceeds of $250,000(the “HDOffering ” together with the FT Offering, the “Offerings ”) for aggregate gross proceeds of $ 3,489,025 from the Offerings.
Each FT Unit consists of one flow-through common shareand one-half warrant and each HD Unit consists of one common share andone-half warrant. Each whole warrant entitles the holder to purchaseone additional common share of the Company at $0.35 for two years fromclosing.
The common shares and warrants issued on closing aresubject to a regulatory resale restriction until April 23, 2023. The Offering s are subject to final approval of the TSX Venture Exchange.
The Company intends to use the proceeds from theOffering s to fundexploration and drilling on the Company’s Tombstone Gold Beltproperties within the Selwyn Basin in the coming year, and forcontinuing investigations of additional mineral properties foracquisition.
Simon Ridgway, CEO of the Company, comments, “We arepleased with the closing of the upsized financing that raised $3.4million, as it reflects significant investor interest in ourexploration plans for 2023. Crescat Capital was the lead purchaserin the financing investing $1.0 million of the funds dedicated to theexploration of the Tombstone Belt.”
Rackla has consolidated an extensive land position inthe eastern Tombstone Belt that extends through the southeast Yukonand into the NWT. Yukon and Alaska have a number of operating mines,development projects and discoveries with Reduced Intrusive RelatedGold Systems (RIRGS) and management believes that the NWT portion ofthe Belt, which is unexplored for RIRGS, has the potential to be thenext frontier for the discovery of these type of deposits.
The Company’s 2023 exploration program includescompleting an airborne magnetic program, building on a regionalgeochemical database and defining drill targets for a planned earlysummer drill program on the Astro Project, as well as advancingexploration on our other NWT projects that include the Jos, Cinnabarand RAK properties.
Qualified Person
Bruce Smith, M.Sc. (Geology), a member of theAustralian Institute of Geoscientists, is Rackla’s Qualified Personas defined by National Instrument 43-101, Standards of Disclosure forMineral Projects. Mr. Smith reviewed and approved the technicalinformation contained in this news release.
ON BEHALF OF THE BOARD
Simon Ridgway,
CEO and Director
Tel: (604) 801-5432; Fax: (604) 662-8829
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 press release.
Forward-LookingInformation
Certain statements contained in thisnews release constitute forward-looking statements within the meaningof Canadian secu ritieslegislation. All statements included herein, other than statements ofhistorical fact, are forward-looking statements and include, withoutlimitation, statements about the Company’s financing, statementsabout the exploration of RIRGS in the NWT, and expectations relatingto the Company’s proposed 2023 exploration program. Often, but notalways, these forward looking statements can be identified by the useof 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”, or statements that events,“could” or “should” occur or be achieved and similarexpressions, including negative variations.
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, changes in generaleconomic conditions and financial markets; the Company or any jointventure 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.sedar.com. Although theCompany has attempted to identify important factors that could causeactual actions, events or results to differ materially from thosedescribed in forward-looking statements, there may be other factorsthat cause actions, events or results to differ from thoseanticipated, estimated or intended.
Forward-looking statements containedherein are based on the assumptions, beliefs, expectations andopinions of management, including but not limited to: that theCompany’s stated goals and planned exploration activities at itsproperties will be achieved; that there will be no material adversechange affecting the Company or its properties; and such otherassumptions as set out herein. Forward-looking statements are made asof the date hereof and the Company disclaims any obligation to updateany forward-looking statements, whether as a result of newinformation, future events or results or otherwise, except as requiredby law. There can be no assurance that forward-looking statements willprove to be accurate, as actual results and future events could differmaterially from those anticipated in such statements. Accordingly,investors should not place undue reliance on forward-lookingstatements.
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