Brixton Metals Announces Brokered Financing of up to $3 Million

Brixton Metals Corporation (TSXV:BBB) is pleased to announce its intention to raise $3.0 million in a brokered private placement (the “Private Placement”), led by Red Cloud Klondike Strike Inc. together with a syndicate of agents including M Partners Inc. (the “Agents“) on a best efforts agency basis. The Private Placement will consist of any combination of units (“Units“) to be issued at a price of $0.70 per Unit and common shares issued on a ‘flow through’ basis under the Income Tax Act (Canada) (the “FT Shares“) at a price of $0.75 per FT Share. Each Unit will consist of one common share and one common share purchase warrant (“Warrant“) with each Warrant exercisable by the holder into one common share of the Company at a price of $1.00 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 September 14, 2016 (the “Closing Date“). In consideration of the Agent’s services, the Company has agreed to pay the Agent a cash commission of 7.0% of the gross proceeds of the Private Placement. The Agent will also receive broker warrants (the “Broker Warrants“) equal to 7.0% of the securities sold pursuant to the Private Placement. Each Broker Warrant entitles the holder to acquire one non-flow-through common share of the Company at a price of $0.70 until the date that is 24 months from the closing of the Private Placement.
The use of proceeds shall be to advance the Company’s Thorn gold-silver project and other properties located in Canada and for general working capital. All securities issued pursuant to this Private Placement will be subject to a statutory four-month hold period. The Private Placement is subject to acceptance by the TSX Venture Exchange (the “Exchange“).
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