Metals Creek Resources Corp. Files to Close First Tranche of Flow-Through Private Placement Financing

Rhea-AI Summary

Metals Creek Resources Corp. (TSXV: MEK, FSE: M1C1) has filed with the TSX Venture Exchange to close the first tranche of its non-brokered private placement financing. This first tranche includes 4,500,000 flow-through units (FT Units) at $0.025 per unit, raising $112,500. Each FT Unit comprises one flow-through common share and one non-flow-through common share purchase warrant, exercisable at $0.06 per share for 24 months.

The company also plans to issue 10,000,000 non-flow-through units (NFT Units) at $0.02 per unit, closing on 475,000 NFT Units for $9,500. Each NFT Unit consists of one common share and one purchase warrant, exercisable at $0.05 per share for 24 months. Proceeds from FT Units will fund exploration at Tillex Copper Project and Shabaqua Corners Gold Property. All securities are subject to a four-month hold period, and the placement remains subject to TSX Venture Exchange approval.

Positive

• Raised $112,500 from FT Units in first tranche.
• Plans to raise up to $200,000 through NFT Units.
• FT Unit proceeds to fund Tillex Copper Project and Shabaqua Corners Gold Property exploration.

Negative

• First tranche of NFT Units only raised $9,500, much lower than the target.

Thunder Bay, Ontario--(Newsfile Corp. - July 10, 2024) - Metals Creek Resources Corp. (TSXV: MEK) (FSE: M1C1) (the "Company" or Metals Creek) further to its June 17, 2024 news release, the Company announces that it has filed documents with the TSX Venture Exchange seeking approval to close the first tranche of its non-brokered private placement financing (the "Financing").

The Company intends to issue up to 8,000,000 flow-through units at a price of $0.025 per unit (the "FT Units") for aggregate proceeds of up to $200,000, closing on 4,500,000 FT Units for proceeds of $112,500, in this first tranche. Each FT Unit consists of one flow-through common share (the "FT Shares") and one non-flow-through common share purchase warrant (the "FT Warrants"), with each FT Warrant entitling the holder to purchase one additional non-flow-through common share of the Company at an exercise price of $0.06 per common share for a period of 24 months from the date of issue. The FT Shares will entitle the holder to receive the tax benefits applicable to flow-through shares, in accordance with provisions of the Income Tax Act (Canada).

The Company also intends to issue up to 10,000,000 non-flow-through units at a price of $0.02 per unit (the "NFT Units") for aggregate proceeds of up to $200,000, closing on 475,000 NFT Units for proceeds of $9,500, in this first tranche. Each NFT Unit consists of one non-flow-through common share and one non-flow-through common share purchase warrant (the "NFT Warrants"), with each NFT Warrant entitling the holder to purchase one additional common share of the Company at an exercise price of $0.05 per common share for a period of 24 months from the date of issue.

In connection with the private placement, the company may pay finders' fees in cash or securities or a combination of both, as permitted by the policies of the TSX Venture Exchange. All securities issued pursuant to the Private Placement will be subject to a four-month hold period. The Private Placement is subject to approval by the TSX Venture Exchange.

The proceeds raised from the FT Units will be used for drilling on the companies Tillex Copper Project and the Shabaqua Corners Gold Property and will ensure that such Canadian Exploration Expenses qualify as a "flow-through mining expenditure" for purposes of the Income Tax Act (Canada), related to the exploration of the Company's exploration projects.

About Metals Creek Resources Corp.

Metals Creek Resources Corp. is a junior exploration company incorporated under the laws of the Province of Ontario, is a reporting issuer in Alberta, British Columbia and Ontario, and has its common shares listed for trading on the Exchange under the symbol "MEK". Metals Creek has earned a 50% interest in the Ogden Gold Property from Newmont Corporation, including the former Naybob Gold mine, located 6 km south of Timmins, Ontario and has an 8 km strike length of the prolific Porcupine-Destor Fault (P-DF). In addition, Metals Creek owns and/or has option agreements in place to acquire a 100% interest in claims in the Shabaqua Corners area of North western Ontario.

Metals Creek also has multiple quality projects available for option which can be viewed on the Company's website. Parties interested in seeking more information about properties available for option can contact the Company at the number below.

Additional information concerning the Company is contained in documents filed by the Company with securities regulators, available under its profile at www.sedarplus.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.

Alexander (Sandy) Stares, President and CEO
Metals Creek Resources Corp
telephone: (709)-256-6060
fax: (709)-256-6061
MetalsCreek.com
Twitter.com/MetalsCreekRes
Facebook.com/MetalsCreek

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/216111

FAQ

What is the purpose of Metals Creek Resources' private placement?

The private placement aims to raise funds for exploration activities at the Tillex Copper Project and the Shabaqua Corners Gold Property.

How much did Metals Creek Resources raise in the first tranche of FT Units?

The company raised $112,500 by closing on 4,500,000 FT Units in the first tranche.

What are the terms for the FT Warrants issued by Metals Creek Resources?

Each FT Warrant allows the holder to purchase one additional non-flow-through common share at $0.06 per share for 24 months from the issuance date.

How will the proceeds from the FT Units be used?

The proceeds will be used for exploration drilling on the Tillex Copper Project and the Shabaqua Corners Gold Property.

How many NFT Units does Metals Creek Resources intend to issue?

The company intends to issue up to 10,000,000 NFT Units.

What is the exercise price for the NFT Warrants?

The NFT Warrants have an exercise price of $0.05 per share and are valid for 24 months from the date of issue.

What is the hold period for securities issued in the Metals Creek Resources private placement?

All securities issued are subject to a four-month hold period.

What approvals are required for the private placement by Metals Creek Resources?

The private placement is subject to approval by the TSX Venture Exchange.