(TheNewswire)
Vancouver, British Columbia – TheNewswire - February 25,2022 – Supernova MetalsCorp. (“SUPERNOVA” or the “Company”) (TSXV:SUPR) (OTC:ABETF)(Frankfurt:A1S.F) pleased to announce that theCompany has closed its non-brokered private placement (the“ PrivatePlacement ”) issuing 1,996,363 common shares(the “ Shares ”) at price of $0.11 per Share, raising total grossproceeds of $219,600.
The Company will use the proceeds from the PrivatePlacement for initial exploration on its 100% owned Lac Saint Simon lithium ("LSS")property located in Quebec, Canada and forgeneral working capital. No finder’s fees were paid in connectionwith the Private Placement.
About Lac Saint Simon
The LSS property is located in the James Bay/EeyouIstchee region of Quebec. The LSS property consists of 9 mineralclaims totaling approximately 480 hectares and has a historic *NI43-101 technical report completed in May 2017. The property is only2km from the boundary of Nemaska Lithium’s Whabouchi Project(“Whabouchi”). According to Nemaska, Whabouchi is one of the mostimportant spodumene lithium hard rock deposits in the world both involume and grade. In 2017 a 56.6 line km airborne magnetic drone basedsurvey identified two main dipole anomalies on the LSS property, andwhen matched with the general geology of the area and considering thesize of the anomalies, likely represent geological features such asfault zones and a dyke system. The information from the survey willassist in a program of geological mapping and prospecting topotentially identify prospective lithium-bearing pegmatite dykes onthe property. The most prospective geology appears to be potentialpegmatite dykes within pink granite in the southern part of theproperty. This area will be targeted for follow up. Generally, lithiummineralization in the region has been concentrated in pegmatites, withnearby Whabouchi being the classic example. “The demand for lithiumand the global shift to renewable green energy sources has beengaining speed in recent years,” stated Sean McGrath, CEO. “Quebecoffers a mining friendly jurisdiction as end users shift focus toestablishing domestic supply-chain channels.”
Debt Settlement
The Company also announces that it has issued anaggregate of 1,204,545 units (the“ Units ”) at a deemed price of $0.11 per Unit, to settle $132,500 in debt (the “ Debt Settlement ”)which consists of (i) $32,500 for past consulting services provided tothe Company by an officer of the Company, and (ii) $100,000 for a loanadvanced to the Company from a third party .
Each Unit consists of one Share of the Company and onetransferable common share purchase warrant (a “ Warrant ”). EachWarrant entitles the holder to acquire oneadditional Share of the Company at a price of $0.145 per Share until 4:00 p.m. (Vancouver time) for twoyears from the date of closing of the Debt Settlement.
Sean McGrath, the CEO and a director of the Company,purchased 900,000 Shares in the Private Placement; Roger March, adirector of the Company, purchased 100,000 Shares in the PrivatePlacement; Lindsay Hamelin, Corporate Secretary of the Company,purchased 50,000 Shares in the Private Placement; and Ken Brophy, theCFO and a director of the Company received 295,454 Units in the DebtSettlement through his consulting company.
As a result, the Private Placement and the DebtSettlement transaction are related party transactions (as definedunder Multilateral Instrument 61-101 Protection of Minority SecurityHolders in Special Transactions (“ MI 61-101 ”). TheCompany relied upon section 5.5(b) the “Issuer Not Listed onSpecified Markets” and 5.7(a) the “FairMarket Value Not More than $2,500,000” and exemptions from theformal valuation and minority shareholder approval requirements,respectively, under MI 61-101.
All securities issued pursuant to the Private Placementand Debt Settlement are subject to a mandatory 4 month holdperiod.
Qualified Person
The technical information in this news release has beenreviewed and approved by Roger March, PGeo and a Director ofSupernova. Mr. March is the qualified person responsible for thescientific and technical information contained herein under NationalInstrument 43-101 standards.
About SUPERNOVA
SUPERNOVA is a resource exploration company focused onacquiring and advancing natural resources opportunities within NorthAmerica.
ON BEHALF OF THE BOARD
Sean McGrath
CEO and Director
NEITHER THECANADIAN SECURITIES EXCHANGE NOR ITS REGULATION SERVICES PROVIDER HASREVIEWED OR ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OFTHIS RELEASE.
Cautionary Statements regardingForward-Looking Information:
Some of the statements contained inthis news release are forward-looking statements and informationwithin the meaning of applicable securities laws. Forward-lookingstatements and information can be identified by the use of words suchas "expects", "intends", "is expected","potential", "suggests" or variations of suchwords or phrases, or statements that certain actions, events orresults "may", "could", "should","would", "might" or "will" be taken,occur or be achieved. This forward-looking information is provided asof the date of this news release. The forward-looking informationreflects our current expectations and assumptions and is subject to anumber of known and unknown risks, uncertainties and other factors,which may cause actual results, performance, or achievements to bematerially different from any anticipated future results, performanceor expectations expressed or implied by the forward-lookinginformation. No assurance can be given that these assumptions willprove correct. Forward-looking statements and information are nothistorical facts and are subject to a number of risks anduncertainties beyond the Company's control. Investors are advised toconsider the risk factors under the heading "Risks andUncertainties" in the Company's MD&A for the year endedDecember 31, 2020 available at www.sedar.com for a discussion of thefactors that could cause the Company's actual results, performance andachievements to be materially different from any anticipated futureresults, performance, or achievements expressed or implied by theforward-looking information. Accordingly, readers should not placeundue reliance on forward-looking statements. The Company undertakesno obligation to update publicly or otherwise revise anyforward-looking statements, except as may be required be required bylaw.
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