Brixton Metals arranges $4-million private placement

 
Brixton Metals Corporation (TSXV:BBB) has entered into a letter agreement with Gravitas Securities Inc., with a syndicate of agents, in connection with a best efforts private placement offering of up to $4-million. The private placement will consist of any combination of units to be issued at a price of 50 cents per unit and common shares issued on a flow-through basis under the Income Tax Act (Canada) at a price of 55 cents per FT share. Each unit will consist of one common share and one common share purchase warrant, with each warrant exercisable by the holder into one common share of the company at a price of 70 cents per share for a period of 24 months from the closing date.
The closing date for the private placement is scheduled to occur on or about March 31, 2017. In consideration of the agent’s services, the company has agreed to pay the agent a cash commission of 8.0 per cent of the gross proceeds of the private placement. The agent will also receive broker warrants equal to 8.0 per cent of the securities sold pursuant to the private placement. Each broker warrant entitles the holder to acquire one common non-flow-through share of the company at a price of 50 cents until the date that is 36 months from the closing of the private placement. The company has also granted the agent the option to offer for sale up to an additional $1-million in units and FT shares.
The proceeds from the private placement will be used to advance the Thorn gold-silver project and the Langis silver project and for general working capital. All securities issued pursuant to this private placement will be subject to a four-month-and-one-day hold period. The private placement is subject to acceptance by the TSX Venture Exchange.
The company may issue securities under the private placement in accordance with the provisions of applicable prospectus exemptions available to existing security holders, if there is interest. Any existing shareholders of the company interested in participating in the private placement should contact the company using the contact information below. The private placement is not subject to a minimum and the company will provide an update on its intended use of proceeds, including approximate amounts, once subscriptions are confirmed.
About Brixton Metals Corp.
Brixton is a Canadian exploration and development company focused on the advancement of its gold and silver projects toward feasibility. Brixton wholly owns two past producers of high-grade silver within the silver-cobalt camp of Ontario. The Langis mine produced 10.4 million ounces of silver at 25 ounces per ton Ag and 358,340 pounds of cobalt, the Hudson Bay mine produced 6.4 million ounces of silver at 123 ounces per ton.
The 996-square-kilometre wholly owned Thorn project is located in northwestern British Columbia, Canada, approximately 105 kilometres east-northeast from Juneau, Alaska.
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