Murchison Minerals Announces Non-Brokered Private Placement

Rhea-AI Summary

Murchison Minerals Ltd. (Murchison) (TSXV:MUR)(OTCQB:MURMF) plans to raise up to $1,500,000 in a non-brokered private placement for winter exploration activities at its 100%-owned BMK Zn-Cu-Ag project in Saskatchewan and working capital. The Offering includes Hard Dollar units at $0.05 per unit and National flow-through units at $0.055 per unit, with each unit consisting of common shares and warrants. Donald K. Johnson, a director and control person, is expected to acquire units to maintain around 30% ownership. The Offering was approved by all independent directors of the Company.

Positive

• None.

Negative

• The Offering may lead to shareholder dilution if Donald K. Johnson acquires a significant number of units to maintain his ownership percentage.

BURLINGTON, ON / ACCESSWIRE / December 14, 2023 / 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 $1,500,000 in a non-brokered private placement (the "Offering"), with the proceeds directed towards the Company's 2024 winter exploration activities at its 100%-owned BMK Zn-Cu-Ag project in Saskatchewan and working capital. .

Pursuant to the Offering, the Company will issue Hard Dollar units ("HD Units") at a price of $0.05 per HD Unit, and National flow-through units ("NFT Units") at a price of $0.055 per NFT Unit, in any combination to raise aggregate gross proceeds of up to $1,500,000.

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 NFT 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 $0.08 for a period of 24 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.

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.

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

"Murchison is in a great position, having two key assets with BMK and HPM, located in Canada's top mining jurisdictions, Saskatchewan, and Quebec, respectively. Today's announcement is geared towards unlocking the potential of the BMK Project by exploring for the copper-rich zones."

About Murchison Minerals Ltd. (TSXV: 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. Murchison currently has 241.0 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, Director Corporate Development
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.

View the original press release on accesswire.com

FAQ

What is Murchison Minerals Ltd.'s (Murchison) ticker symbol?

Murchison Minerals Ltd.'s ticker symbol is MUR on the TSX Venture Exchange and MURMF on the OTCQB.

What is the purpose of the non-brokered private placement announced by Murchison Minerals Ltd. (Murchison)?

The non-brokered private placement aims to raise funds for winter exploration activities at its BMK Zn-Cu-Ag project in Saskatchewan and working capital.

What are the details of the Offering by Murchison Minerals Ltd. (Murchison)?

The Offering includes Hard Dollar units at $0.05 per unit and National flow-through units at $0.055 per unit, with each unit consisting of common shares and warrants.

Who is expected to acquire units in the Offering by Murchison Minerals Ltd. (Murchison)?

Donald K. Johnson, a director and control person, is anticipated to acquire a certain number of Units under the Offering to maintain his current ownership at around 30%.