EuroPacific Clarifies Use of Proceeds and Insider Participation

Rhea-AI Summary

EuroPacific Metals announced a non-brokered private placement for up to 6,250,000 units at $0.04 per unit, aiming to raise $250,000. Each unit consists of one common share and one transferrable share purchase warrant, allowing the holder to buy an additional share at $0.05 for two years. Proceeds will fund the Miguel Vacas drill program in Portugal. Insiders Karim Rayani and Deepak Malhotra will each purchase 500,000 units, constituting related party transactions under MI 61-101, though no significant change in their ownership percentages will occur. The company is exempt from formal valuation and minority shareholder approval requirements under specific exemptions. Finder's fees may be paid, and all securities will be subject to a statutory hold period.

Positive

• EuroPacific aims to raise $250,000 through a non-brokered private placement.
• Proceeds will fund the advancement of the Miguel Vacas drill program in Portugal.
• Insiders' participation signifies confidence in the company's prospects.
• The private placement is subject to TSX Venture Exchange approval, potentially adding regulatory credibility.

Negative

• Participation by insiders could raise concerns about potential conflicts of interest.
• The private placement will dilute existing shareholders.
• The exercise price of the warrants ($0.05) provides modest upside potential.

VANCOUVER, BC / ACCESSWIRE / June 24, 2024 / Europacific Metals Inc. (TSX-V:EUP)(OTCQB:AUCCF) (the "Company" or "EuroPacific") wishes to clarify the terms of its previously announced non-brokered private placement of up to 6,250,000 units (the "Units") at $0.04 per Unit for gross proceeds of up to $250,000 (the "Private Placement").

Each Unit consists of one common share of the Company and one transferrable share purchase warrant (a "Warrant"). Each Warrant entitles the holder thereof to acquire an additional common share of the Company (a "Warrant Share") at an exercise price of $0.05 per Warrant Share for a period of two (2) years.

The proceeds from the Private Placement will be used for further advancement of the Company's drill program at Miguel Vacas, Portugal. None of the proceeds from the Private Placement will be used for payments to non-arm's length parties or persons conducting investor relations activities.

Karim Rayani, CEO and director, and Deepak Malhotra, director (together, the "Insiders") have agreed to subscribe in the Private Placement for 500,000 Units each, which constitute related party transactions pursuant to Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions ("MI 61-101"). There has not been a material change in the percentage of the outstanding securities of the Company that are owned by the Insiders as a result of their participation in the Private Placement. The Company is exempt from the requirements to obtain a formal valuation and minority shareholder approval in connection with the participation of the Insiders in the Private Placement in reliance of the exemptions contained in sections 5.5(a) and 5.7(1)(a) of MI 61-101, respectively, as the fair market value of the insider participation does not exceed 25% of the Company's market capitalization as determined in accordance with MI 61-101.

Finder's fees may be paid in connection with the Private Placement. All securities issued pursuant to the Private Placement will be subject to a statutory hold period in accordance with applicable Canadian securities laws. The Private Placement is subject to approval of the TSX Venture Exchange.

About Europacific Metals Inc.

EuroPacific Metals Inc. is a Canadian public company listed on TSXV and in US on OTCQB. The Company holds brownfield gold, and copper-gold projects located in Portugal. The Company is focused on exploration in highly prospective geological settings in Europe jurisdictions. EuroPacific Metals ("EUP") owns a total of 100% equity interest in EVX Portugal, a private Portugal based company, that holds the legal exploration rights from the Portugal Government on the Borba 2 ("Borba 2") exploration properties, covering approximately 328 square kilometers in the Alentejo region in Southern Portugal. Miguel Vacas is the most advanced prospect within the Borba 2 license.

On behalf of the Board of Directors

Europacific Metals Inc.
Mr. Karim Rayani, Chief Executive Officer
11th Floor - 1111 Melville Street
Vancouver, BC V6E 3V6
E: k@r7.capital
www.europacific.ca

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.

Except for historical information contained herein, this news release contains forward-looking statements that involve risks and uncertainties. Actual results may differ materially. Except as required pursuant to applicable securities laws, the Company will not update these forward-looking statements to reflect events or circumstances after the date hereof. More detailed information about potential factors that could affect financial results is included in the documents filed from time to time with the Canadian securities regulatory authorities by the Company.

SOURCE: Europacific Metals Inc.

View the original press release on accesswire.com

FAQ

What is EuroPacific Metals' private placement announced on June 24, 2024?

EuroPacific Metals announced a non-brokered private placement to sell up to 6,250,000 units at $0.04 per unit, aiming to raise up to $250,000.

What are the terms of the units in EuroPacific Metals' private placement?

Each unit consists of one common share and one transferrable share purchase warrant, allowing the holder to acquire an additional share at $0.05 for two years.

How will the proceeds from EuroPacific Metals' private placement be used?

The proceeds will be used to advance the Miguel Vacas drill program in Portugal.

How much are EuroPacific Metals insiders Karim Rayani and Deepak Malhotra investing in the private placement?

Karim Rayani and Deepak Malhotra are each subscribing for 500,000 units.

Will the participation of insiders in EuroPacific Metals' private placement affect the percentage of outstanding securities they own?

No, there will be no material change in the percentage of outstanding securities owned by the insiders.

What regulatory exemptions apply to EuroPacific Metals' private placement?

The company is exempt from formal valuation and minority shareholder approval requirements under MI 61-101 due to the fair market value of insider participation not exceeding 25% of the company's market capitalization.