Murchison Closes Fully-Subscribed Private Placement, and Announces Strategic Investment by Michael Gentile, CFA

Rhea-AI Summary

Murchison Minerals Ltd. has successfully closed a $4,000,000 non-brokered private placement, issuing 13,500,000 units at $0.08 each and 30,737,571 flow-through units at $0.095. The funds raised will support exploration and general working capital. Notably, investor Michael Gentile now holds 6.85% of the company's shares, while SIDEX increased its stake. The placement, subject to TSX Venture Exchange approval, included insider participation and finder’s fees totaling $198,005.

Positive

• Raised $4,000,069 through private placement for exploration and working capital.
• Michael Gentile becomes a key strategic investor with a 6.85% stake.
• SIDEX increases shareholding by subscribing to additional units.

Negative

• Private placement involves significant insider participation, raising potential governance concerns.

THIS NEWS RELEASE IS INTENDED FOR DISTRIBUTION IN CANADA ONLY AND IS NOT INTENDED FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR DISSEMINATION IN THE UNITED STATES

BURLINGTON, ON / ACCESSWIRE / October 21, 2021 / Murchison Minerals Ltd. ("Murchison" or the "Company") (TSXV:MUR) is pleased to announce that further to its press release dated September 29, 2021, the Company has closed the $4,000,000 non-brokered private placement (the "Private Placement") as detailed below.

The Company issued 13,500,000 units (the "Units") at a price of $0.08 per Unit as well as 30,737,571 flow-through units (the "FT Units") at a price of $0.095 per FT Unit for aggregate gross proceeds of $4,000,069. Each Unit was comprised of one common share of the Company (a "Common Share") and one-half of a common share purchase warrant (each whole warrant, a "Warrant") and each FT Unit was comprised of one flow-through common share of the Company (a "FT Common Share") and one-half of a Warrant. Each whole Warrant shall be exercisable to acquire one additional Common Share at a price of $0.12 for a period of 12 months expiring October 21, 2022. Proceeds from the Private Placement will be used by the Company for exploration, working capital and for other general and administrative costs.

Troy Boisjoli, President and CEO states, "Murchison is very pleased to welcome Michael Gentile as a strategic investor. Mr Gentile's support comes at a pivotal time for the Company as we are starting an inaugural drill program at the highly prospective HPM nickel-copper-cobalt project in Quebec. This Private Placement puts us in an excellent financial position to unlock the potential of HPM."

Following closing of the Private Placement, Mr. Gentile owns 6.85% (10,500,000 common shares) of the Company's issued and outstanding common shares, and on a partially-diluted basis (including 5,250,000 warrants), Mr. Gentile will own 9.94% of the Company's issued and outstanding common shares.

Mr. Gentile who has an extensive institutional money management background is an active and strategic investor in the junior mining sector owning significant stakes in over 20 small cap exploration companies. Michael is currently a strategic advisor to Arizona Metals (AMC-V) and a director of Northern Superior Resources (SUP-V), Roscan Gold (ROS-V), Radisson Mining Resources (RDS-V) and Solstice Gold (SGC-V).

The Company is also pleased that SIDEX, that became shareholder in March 2021, has increased its holding in the Company by subscribing to another 2,500,000 Units of the Private Placement. SIDEX is an initiative of the Québec government and the Fonds de Solidarité FTQ whose mission is to invest in companies engaged in mineral exploration in Québec in order to diversify the province's mineral base, promote innovation and new entrepreneurs.

Mr. Troy Boisjoli, recently appointed President and CEO of Murchison, acquired 1,705,100 FT Units of the Private Placement and Donald K Johnson, director and major shareholder of Murchison acquired indirectly 10,000,000 Units and 3,158,000 FT Units for aggregate investment of $1,100,010 to maintain his current ownership in the Company at approximately 30%.

The Private Placement is subject to final acceptance of the TSX Venture Exchange. Finder's fees and finder's warrants totaling $198,005 and 2,178,997 respectively were paid in relation to the Private Placement. All securities issued under the Private Placement are subject to a four-month hold period until February 22, 2022 in accordance with applicable securities laws.

The Private Placement constituted a "related party transaction" as defined in Multilateral Instrument 61-101 - Protection of Minority Securityholders in Special Transactions ("MI 61-101"), as insiders of the Company acquired an aggregate of 10,000,000 Units and 4,863,100 FT Units. The Company is relying on the exemptions from the valuation and minority shareholder approval requirements of MI 61-101 contained in sections 5.5(a) and 5.7(1)(a) of MI 61-101, as the fair market value of the participation in the Private Placement by insiders does not exceed 25% of the market capitalization of the Company, as determined in accordance with MI 61-101. The Company did not file a material change report in respect of the related party transaction at least 21 days before the closing of the Private Placement, which the Company deems reasonable in the circumstances in order to complete the Private placement in an expeditious manner. The Private Placement was approved by all independent directors of the Company.

About Murchison Minerals Ltd.

Murchison is a Canadian‐based exploration company focused on the exploration and development of the 100%-owned Brabant‐McKenzie zinc‐copper‐silver deposit and surrounding land package in north‐central Saskatchewan. The Company also has a 100% interest in the HPM nickel‐copper‐cobalt project in Quebec. Following the Private Placement, the Company now has 153.2 million shares issued and outstanding.

Additional information about Murchison and its exploration projects can be found on the Company's website at www.murchisonminerals.com.

For further information, please contact:

Troy Boisjoli, President and CEO
Email: tboisjoli@murchisonminerals.com

Erik H Martin, Chief Financial Officer
Email: emartin@murchisonminerals.com

CHF Capital Markets
Thomas Do, IR Manager
Phone: 416-868-1079 x232
Email: thomas@chfir.com

Forward-Looking Information

Certain information set forth in this news release may contain forward-looking information that involves substantial known and unknown risks and uncertainties. This forward-looking information is subject to numerous risks and uncertainties, certain of which are beyond the control of the Company, including, but not limited to, the impact of general economic conditions, industry conditions, and dependence upon regulatory approvals. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking information. The parties undertake no obligation to update forward-looking information except as otherwise may be required by applicable securities law.

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

SOURCE: Murchison Minerals Ltd.

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FAQ

What was the amount raised in Murchison Minerals' recent private placement?

Murchison Minerals raised $4,000,069 in its recent private placement.

Who is the strategic investor in Murchison Minerals' private placement?

Michael Gentile is the strategic investor in Murchison Minerals' private placement.

What use of proceeds was disclosed from the private placement by Murchison Minerals?

Proceeds will be used for exploration, working capital, and general administrative costs.

What percentage of shares does Michael Gentile own in Murchison Minerals post-transaction?

Post-transaction, Michael Gentile owns 6.85% of Murchison Minerals' shares.

What is the status of the private placement with the TSX Venture Exchange?

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