Opawica Explorations Inc. Closes $3.12 Million First Tranche of Private Placement

- May 31st, 2021

TheNewswire May 31, 2021 Opawica Explorations Inc. is pleased to announce that further to its news release of May 12, 2021, the Company has closed the first tranche of a non-brokered private placement to raise gross proceeds of $3,129,500 .  The Company raised $2,164,500 through the sale of 5,411,250 non flow-through units priced at $0.40 . Each NFT Unit consists of one common share and one-half of one share …

(TheNewswire)

TheNewswire May 31, 2021 Opawica Explorations Inc. (the “Company”) (TSXV:OPW) is pleased to announce that further to its news release of May 12, 2021, the Company has closed the first tranche of a non-brokered private placement to raise gross proceeds of $3,129,500 (the “Offering”).  The Company raised $2,164,500 through the sale of 5,411,250 non flow-through units priced at $0.40 (the “NFT Units”). Each NFT Unit consists of one common share and one-half of one share purchase warrant, with each whole warrant exercisable into one further common share at a price of $0.60 for a term of two years.  The Company raised an additional $965,000 through the sale of 1,930,000 flow-through units priced at $0.50 (the “FT Units”).  Each FT Unit consists of one flow-through common share and one half of one share purchase warrant, with each whole warrant exercisable into one further common share at a price of $0.60 for a term of two years.

The proceeds from the sale of the flow-through portion of the Offering will be used for exploration activity on the Company’s 100% owned Bazooka and Arrowhead properties located near Rouyn-Noranda, Quebec, where drilling is expected to commence this year subject to completion of the Offering. In addition, a portion of the flow-through proceeds will be spent on the Company’s mineral property interests in the province of Newfoundland and Labrador. The proceeds from the sale of the non flow-through portion of the Offering will be used for project acquisitions and for general working capital.

Finder’s fees of $85,425 and 107,313 finder’s warrants exercisable at $0.60 per common share for a term of two years was paid on a portion of the Offering.

All securities issued are restricted from trading until October 1, 2021.

A final tranche of the Offering is expected to close on or before June 4, 2021.

Philippe Havard, a director of the Company, subscribed for 25,000 NFT Units. This participation constitutes a “related party transaction” for the purposes of Multilateral Instrument 61-101, Protection of Minority Security Holders in Special Transactions (“MI 61-101”). The Company is relying upon exemptions from the requirement to obtain a formal valuation and seek minority shareholder approval for the Offering on the basis that the fair market value of the participation by related parties in the Offering is less than 25% of the Company’s current market capitalization.

About Opawica Explorations Inc.

Opawica is a Canadian mineral exploration company with a strong portfolio of precious and base metal properties within the Rouyn-Noranda region of the Abitibi gold belt in Quebec and in Central Newfoundland and Labrador. The Company’s management has a great record in discovering and developing successful exploration projects. The Company’s objective is to increase shareholder value through the development of exploration properties using cost-effective exploration practices, acquiring further exploration properties and seeking partnerships by either joint venture or sale with industry leaders.

FOR FURTHER INFORMATION CONTACT:

Blake Morgan

President and Chief Executive Officer

Opawica Explorations Inc.

Telephone: 604-681-3170

Fax: 604-681-3552

Disclaimer for Forward-Looking Information

This news release includes certain “forward-looking statements” under applicable Canadian securities legislation that are not historical facts. Forward-looking statements involve risks, uncertainties, and other factors that could cause actual results, performance, prospects, and opportunities to differ materially from those expressed or implied by such forward-looking statements. Forward-looking statements in this news release include, but are not limited to, statements with respect to the expectations of management regarding the proposed Offering, the expectations of management regarding the use of proceeds of the Offering, closing conditions for the Offering, and Exchange approval of the proposed Offering. Although the Company believes that the expectations reflected in the forward-looking information are reasonable, there can be no assurance that such expectations will prove to be correct. Such forward-looking statements are subject to risks and uncertainties that may cause actual results, performance or developments to differ materially from those contained in the statements including that: the Company may not complete the Offering on terms favorable to the Company or at all; the Exchange may not approve the Offering; the proceeds of the Offering may not be used as stated in this news release; the Company may be unable to satisfy all of the conditions to the Closing; and those additional risks set out in the Company’s public documents filed on SEDAR at www.sedar.com. Although the Company believes that the assumptions and factors used in preparing the forward-looking statements are reasonable, undue reliance should not be placed on these statements, which only apply as of the date of this news release, and no assurance can be given that such events will occur in the disclosed time frames or at all. Except where required by law, the Company disclaims any intention or obligation to update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

THIS NEWS RELEASE, REQUIRED BY APPLICABLE CANADIAN LAWS, IS NOT FOR DISTRIBUTION TO U.S. NEWS SERVICES OR FOR DISSEMINATION IN THE UNITED STATES, AND DOES NOT CONSTITUTE AN OFFER TO SELL SECURITIES AND THE COMPANY IS NOT SOLICITING AN OFFER TO BUY THE SECURITIES DESCRIBED HEREIN. THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE SECURITIES LAWS, AND MAY NOT BE OFFERED OR SOLD IN THE UNITED STATES OR TO U.S. PERSONS UNLESS REGISTERED OR EXEMPT THEREFROM.

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

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