Murchison Minerals Announces $5,500,000 Non-Brokered Private Placement with Continued Support of Strategic Investor Michael Gentile and Largest Shareholder Donald K. Johnson

Rhea-AI Summary

Murchison Minerals Ltd. plans to raise up to $5.5 million through a non-brokered private placement, pending regulatory approvals. Proceeds will fund drilling at the HPM nickel-copper-cobalt property in Quebec and cover working capital. The offering includes Hard Dollar units at $0.09 per unit, Quebec flow-through units at $0.105, and Quebec Charity flow-through units at $0.14. Major shareholders, including Michael Gentile and Donald K. Johnson, will participate, ensuring their ownership stakes remain intact.

Positive

• Raising up to $5.5 million for drilling and working capital.
• Participation of strategic investors to maintain their ownership stakes.
• Upcoming summer drill program focused on the high-grade BDF Zone.

Negative

• None.

BURLINGTON, ON / ACCESSWIRE / June 2, 2022 / Murchison Minerals Ltd. ("Murchison" or the "Company") (TSXV:MUR), (OTCQB:MURMF) is pleased to announce that, subject to all regulatory approvals, it intends to raise up to $5,500,000 in a non-brokered private placement (the "Offering"), with the proceeds directed towards drilling at the Company's 100%-owned HPM nickel-copper-cobalt property in Eastern Quebec, working capital and administrative expenses. It is anticipated that strategic investor Mr. Michael Gentile and Murchison's largest shareholder Mr. Donald K. Johnson will participate in the Offering maintaining their current ownership positions.

Pursuant to the Offering, the Company will issue Hard Dollar units ("HD Units") at a price of $0.09 per HD Unit, Quebec flow-through units ("QFT Units") at a price of $0.105 per QFT Unit and Quebec Charity flow-through units ("QCFT Units") at a price of $0.14 per QCFT Unit, in any combination to raise aggregate gross proceeds of up to $5,500,000.

Each HD Unit will be 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 QFT Unit and QCFT Unit will be 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 $0.18 for a period of 18 months from the date of closing of the Offering.

A finder's fee may apply to a portion of the proceeds raised under the Offering in the amount of 6% cash and 6% finders' warrants. All securities issued pursuant to the Offering will be subject to a four month hold period from the date of issue.

In the event that the volume weighted average price ("VWAP") of the Common Shares on the TSX Venture Exchange (the "TSXV") is greater than CDN$0.225 for 20 consecutive trading days, the Company may give notice to the holders of the Warrants that the expiry time of the Warrants has been accelerated and the Warrants will expire on the 30^th business day following the date of such notice.

It is anticipated that Donald K. Johnson, a director and control person of the Company will acquire a certain number of Units under the Offering to maintain his current ownership at around 30%. Any such participation will be considered a "related party transaction" as defined under Multilateral Instrument 61-101 ("MI 61-101"). It is anticipated that the transaction will be exempt from the formal valuation and minority shareholder approval requirements of MI 61-101 based on a determination that the securities of the Company are listed on the TSXV and that the fair market value of the Offering, insofar as it involves interested parties, will not exceed $2,500,000 or 25% of the market capitalization of the Company. The Offering was approved by all independent directors of the Company.

HPM Summer Drill Program

Based on the Preliminary modelling at the BDF Zone, (April 4^th news release) the Company is now in a position to move forward with resource expansion and delineation during this summer's drill program at the BDF Zone. Murchison will be leveraging the past work competed at the BDF Zone - which until now, had not previously been modelled - during this summer's drill program to significantly advance the project forward. Consequently, the Company will be releasing an HPM exploration update in the near-term, outlining the use of proceeds from the Offering. With the objective of drilling the high-grade nickel-copper cobalt BDF Zone which has the potential to define a near-surface mineral resource.

Strategic Investor Michael Gentile, CFA

Mr. Gentile is considered one of the leading strategic investors in the junior mining sector, owning significant positions in over 15 small-cap mining companies. Mr. Gentile is currently a strategic advisor to Arizona Metals (AMC-V) and Geomega Resources (GMA-V) as well as being a director of Northern Superior Resources (SUP-V), Roscan Gold (ROS-V), Radisson Mining Resources (RDS-V) and Solstice Gold (SGC-V). Mr. Gentile recently co-founded Bastion Asset Management, an investment management firm based out of Montreal, Quebec and was previously a Senior Portfolio Manager with Formula Growth Limited.

Mr. Troy Boisjoli, Murchison Minerals President, CEO, and Director comments:

"Murchison is very pleased to have the continued support of strategic investor, Mr. Michael Gentile, and Murchison's largest shareholder and Director Mr. Donald K Johnson. This is truly an exciting time for the Company as we are preparing to move forward with our summer drill program at our HPM nickel-copper-cobalt project in Quebec - where our focus will be on developing the Barre de Fer Zone towards a maiden resource."

About Murchison Minerals Ltd. (TSX.V:MUR), (OTCQB:MURMF)

Murchison is a Canadian‐based exploration company focused on nickel-copper-cobalt exploration at the 100% - owned HPM Project in Quebec and the exploration and development of the 100% - owned Brabant Lake zinc‐copper‐silver project in north‐central Saskatchewan. The Company also holds an option to earn 100% interest in the Barraute VMS exploration project also located in Quebec, north of Val d'Or. Murchison currently has 171.3 million shares issued and outstanding.

Additional information about Murchison and its exploration projects can be found on the Company's website at www.murchisonminerals.ca . For further information, please contact:

Troy Boisjoli, President and CEO or
Erik H Martin, CFO
Justin Lafosse, IR Manager
Tel: (416) 350‐3776
info@murchisonminerals.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. FLI herein includes, but is not limited to: future drill results; stakeholder engagement and relationships; parameters and methods used with respect to the assay results; the prospects, if any, of the deposits; future prospects at the deposits; and the significance of exploration activities and results. FLI is designed to help you understand management's current views of its near- and longer-term prospects, and it may not be appropriate for other purposes. FLI by their nature are based on assumptions and involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such FLI. Although the FLI contained in this press release is based upon what management believes, or believed at the time, to be reasonable assumptions, the Company cannot assure shareholders and prospective purchasers of securities of the Company that actual results will be consistent with such FLI, as there may be other factors that cause results not to be as anticipated, estimated or intended, and neither the Company nor any other person assumes responsibility for the accuracy and completeness of any such FLI. Except as required by law, the Company does not undertake, and assumes no obligation, to update or revise any such FLI contained herein to reflect new events or circumstances, except as may be required by law. Unless otherwise noted, this press release has been prepared based on information available as of the date of this press release. Accordingly, you should not place undue reliance on the FLI or information contained herein. Furthermore, should one or more of the risks, uncertainties or other factors materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in FLI. Assumptions upon which FLI is based, without limitation, include: the ability of exploration activities to accurately predict mineralization; the accuracy of geological modelling; the ability of the Company to complete further exploration activities; the legitimacy of title and property interests in the deposits; the accuracy of key assumptions, parameters or methods used to obtain the assay results; the ability of the Company to obtain required approvals; the results of exploration activities; the evolution of the global economic climate; metal prices; environmental expectations; community and nongovernmental actions; and any impacts of COVID-19 on the deposits, the Company's financial position, the Company's ability to secure required funding, or operations. Risks and uncertainties about the Company's business are more fully discussed in the disclosure materials filed with the securities regulatory authorities in Canada, which are available at www.sedar.com. 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 is Murchison Minerals Ltd. planning to do with the $5.5 million raise?

Murchison Minerals intends to allocate the funds for drilling at the HPM nickel-copper-cobalt property, as well as for working capital and administrative expenses.

Who are the main investors participating in Murchison's private placement?

The main investors include strategic investor Michael Gentile and Murchison's largest shareholder, Donald K. Johnson.

What are the prices of the units offered in the private placement?

Hard Dollar units are priced at $0.09, Quebec flow-through units at $0.105, and Quebec Charity flow-through units at $0.14.

What is the focus of Murchison's summer drill program?

The summer drill program will concentrate on resource expansion and delineation at the high-grade nickel-copper-cobalt BDF Zone.