July 31, 2018, Vancouver, B.C., Metallic Minerals Corp. (TSX-V: MMG; US OTC: MMNGF) (“Metallic Minerals” or the “Company”) is pleased to announce that it has completed a non-brokered private placement for aggregate proceeds of $1,540,377 through the issuance of 4,667,810 common shares on a flow-through basis (“FT Share”) at a price of $0.33 per FT Share (the “Private Placement”). The issue price of the Private Placement represents an approximate 10% premium to the five-day volume weighted average trading price of the Company’s shares on the TSX Venture Exchange (“TSX-V”). Management and directors of the Company participated in the financing for $222,750 or 14.5% of the Private Placement.
Proceeds from the Private Placement are intended to be used toward eligible Canadian Exploration Expenses, within the meaning of the Income Tax Act (Canada), at the Company’s Yukon exploration projects.
Greg Johnson, CEO and Chairman, noted, "We are pleased to complete this flow-through private placement, which will be directed toward the ongoing exploration and development of our Keno Silver Project in the high-grade, historic Keno Hill Silver District of Canada’s Yukon Territory, as well as at our nearby McKay Hill Silver Project.”
The Private Placement is subject to final TSX-V approval and the FT Shares are subject to a hold period of four months and one day from their date of issuance, under applicable Canadian securities law.
The FT Shares have not been, and will not be, registered under the U.S. Securities Act or any U.S. state securities laws, and may not be offered or sold in the United States or to, or for the account or benefit of, U.S. persons, absent registration or any applicable exemption from the registration requirements of the U.S. Securities Act and applicable U.S. state securities laws.
The Company has agreed to pay finders' fees totalling of $72,042 in cash or shares on a portion of the Private Placement and to issue 60,000 finder warrants. Each finder warrant is exercisable into one common share of the Company at a price of $0.37 per share for a period of 24 months from the date of closing. If, at any time after the closing date, the common shares on the TSX-V close above $0.60 for 10 consecutive trading days, the Company may provide written notice of acceleration of the expiry date of the finder warrants.
About the Keno Silver Project
Metallic Minerals holds a 166-square kilometer land position in the prolific Keno Hill Silver District; one of the world's highest-grade silver districts, with 300 million ounces of past production and current resources. Based on the shallow depth of production, recent major discoveries and highly-prospective geology, the district has potential to become one of the world's premier silver producing regions. Keno Hill has over 100 years of mining and exploration history, yet recent major discoveries demonstrate the excellent potential for delineation of new world-class deposits through systematic modern exploration along the known mineralized structural corridors. With 10 of these known mineralized trends traversing Metallic Minerals' holdings, the company is focused on identifying and rapidly advancing the most prospective targets toward resource definition.
Metallic Minerals’ 2018 exploration program, initiated in May, includes a drill-focused program to follow on the success of the inaugural program in 2017, which advanced three targets to the resource-delineation stage, six targets to drill-ready status and identified a number of earlier-stage priority targets for surface-based exploration. Drilling commenced in June on the advanced-stage exploration targets along with concurrent follow-up exploration work on the earlier-stage targets.
About Metallic Minerals Corp.
Metallic Minerals is a growth-stage exploration company focused on the acquisition and development of high-grade silver and gold in Yukon within underexplored districts with potential to produce top-tier assets. The company's objective is to create value through a disciplined and systematic approach to exploration, reducing investment risk and maximizing the probability of long-term success. Metallic Minerals' core Keno Silver Project is located in the historic high-grade Keno Hill silver district of Canada's Yukon. The Company's McKay Hill project, northeast of Keno Hill, is a high-grade historical silver-gold producer. Metallic Minerals is also building a portfolio of gold royalties in the historic Klondike Gold District. The Company is led by a team with a track record of discovery and exploration success, including large scale development, permitting and project financing.
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Forward Looking Statements: This news release includes certain statements that may be deemed "forward-looking statements". All statements in this release, other than statements of historical facts including, without limitation, statements regarding potential mineralization, historic production, estimation of mineral resources, the realization of mineral resource estimates, interpretation of prior exploration and potential exploration results, the timing and success of exploration activities generally, the timing and results of future resource estimates, permitting time lines, metal prices and currency exchange rates, availability of capital, government regulation of exploration operations, environmental risks, reclamation, title, and future plans and objectives of the company are forward-looking statements that involve various risks and uncertainties. Although Metallic Minerals believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Forward-looking statements are based on a number of material factors and assumptions. Factors that could cause actual results to differ materially from those in forward-looking statements include failure to obtain necessary approvals, unsuccessful exploration results, changes in project parameters as plans continue to be refined, results of future resource estimates, future metal prices, availability of capital and financing on acceptable terms, general economic, market or business conditions, risks associated with regulatory changes, defects in title, availability of personnel, materials and equipment on a timely basis, accidents or equipment breakdowns, uninsured risks, delays in receiving government approvals, unanticipated environmental impacts on operations and costs to remedy same, and other exploration or other risks detailed herein and from time to time in the filings made by the companies with securities regulators. Readers are cautioned that mineral resources that are not mineral reserves do not have demonstrated economic viability. Mineral exploration and development of mines is an inherently risky business. Accordingly, the actual events may differ materially from those projected in the forward-looking statements. For more information on Metallic Minerals and the risks and challenges of their businesses, investors should review their annual filings that are available at www.sedar.com.