KELOWNA, BC, Jan. 18, 2021 /CNW/ - Further to news releases on
December 11 and 17, 2020, Metalex
Ventures Ltd. (TSXV: MTX) (the "Company") is pleased to
announce the closing of the final tranche of its private placement
(the "Placement"), resulting in gross proceeds of
$1,219,560. This tranche of the
Placement (the "Final Tranche") consisted of the issuance of
1,188,235 flow through shares (the "Shares") and 15,979,427 non
flow through units (the "Units"). The Shares were sold at a
price of $0.085 per Share and the
Units were sold at a price of $0.07
per Unit; each Unit is comprised of one common share and one-half
warrant (each whole warrant a "Warrant") entitles the holder to
acquire a further common share of the Company at a price of
$0.10 for a term of two years.
Combined with the first and second tranches, the Placement has
resulted in gross proceeds of $3,128,460 from the issuance of 19,163,528 Shares
and 21,422,284 Units.
All securities issued in the final tranche of the Placement are
subject to a hold period expiring May 16,
2021. Finders' fees of $26,320
were paid and 100,000 finders' Warrants were issued in connection
with this tranche of the Placement. Finders' Warrants have
the same terms as the Placement Warrants.
Proceeds from the Placement will be applied to the upcoming
exploration program on the Company's Quebec and South African properties, as well
as for general working capital of the Company.
Further to the news release on December
24, 2020, the Company and Dr. Charles Fipke, the Chairman of the Company, also
announce that the Company has, concurrent with the closing of the
Final Tranche, settled $2.75 million
in outstanding indebtedness owing to Kel-Ex Development Ltd., a
company owned by Dr. Fipke, through the issuance of 32,352,941
common shares at a deemed price of $0.085 per share (the "Debt Settlement").
These shares are subject to a hold period expiring May 16, 2021. Prior to the Debt Settlement and
the closing of the Final Tranche, Dr. Fipke directly and indirectly
held 45,114,924 common shares and 500,000 options of the Company
(the "Options") representing 37.45% of the outstanding shares of
the Company (assuming exercise of the Options). Following the Debt
Settlement and closing of the Final Tranche, Dr. Fipke held
77,967,865 common shares of the Company representing 41.94% of the
outstanding shares of the Company (assuming exercise of the
Options).
Depending on economic or market conditions, or matters related
to the Company, Dr. Fipke advises that he may, in the future,
choose to either acquire additional securities or dispose of
securities of the Company; however, he has no current plans to
dispose of any securities and to date has never disposed of any
shares of the Company.
For further information with respect to the Debt Settlement and
to obtain a copy of the early warning report filed under applicable
securities legislation in connection with the Debt Settlement,
please go to the Company's profile on the SEDAR website
(www.sedar.com) or contact Jason
Granger at 250-860-8599.
Signed,
Charles Fipke
Charles Fipke
Chairman
Neither 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.
SOURCE Metalex Ventures Ltd.