Major Precious Metals Completes Non-Brokered Private Placement

Rhea-AI Summary

Major Precious Metals has successfully closed a non-brokered private placement, issuing 24,285,715 units at $0.35 each for gross proceeds of $8,500,000.25. Each unit consists of one common share and half a warrant, with warrants priced at $0.70 for additional shares. The funds will support a major drilling campaign at the Skaergaard Project in Greenland, which has significant palladium, platinum, and gold resources of 5.51 Moz and 14.4 Moz respectively. Finder's fees amount to $340,851 and additional warrants issued.

Positive

• Raised $8,500,000.25 through private placement to fund drilling at Skaergaard Project.
• Skaergaard Project has 5.51 Moz Indicated and 14.4 Moz Inferred PdEq resources, indicating strong potential for future mining.
• Mobilization for drilling is underway, demonstrating proactive project development.

Negative

• None.

VANCOUVER, British Columbia, July 07, 2021 (GLOBE NEWSWIRE) -- Major Precious Metals Corp. ("Major Precious Metals" or the “Company”) (CSE:SIZE | OTC:SIZYF | FRANKFURT:3EZ) is pleased to announce that it has closed a non-brokered private placement (the “Private Placement”) of 24,285,715 units of the Company (the “Units”) at a price of $0.35 per Unit for gross proceeds of $8,500,000.25. Each Unit consists of one (1) common share of the Company (a “Common Share”) and one-half of one transferable Common Share purchase warrant (with two half warrants being a “Warrant”). Each Warrant entitles the holder thereof to purchase one (1) additional Common Share for a period of two (2) years from closing at a price of $0.70 per Common Share. In the event that the Common Shares have a closing price on the Canadian Securities Exchange (or such other exchange on which the Common Shares may be traded at such time) of $1.20 or greater per Common Share for a period of ten (10) consecutive trading days at any time from the closing of the Private Placement, the Company may accelerate the expiry date of the Warrants by giving notice to the holders thereof (by disseminating a news release advising of the acceleration of the expiry date of the Warrants) and, in such case, the Warrants will expire on the thirtieth (30^th) day after the date of such notice.

The Company intends to use the net proceeds from the Private Placement in support of a large diamond drilling campaign already underway on its Skaergaard Project in eastern Greenland. The drilling program is expected to begin within the next few weeks, and mobilization is well underway with personnel already stationed in Greenland. Drilling crew, equipment and logistical support is in place and a large commercial support vessel will soon be on station to provide housing and a base for helicopter transport services. The Company is developing a globally significant precious metal deposit (palladium, platinum, and gold) with 5.51 Moz contained PdEq ounces in the Indicated Resource category and 14.4 Moz contained PdEq ounces in the Inferred Resource category, as described in the Company’s NI 43-101 technical report on the Skaergaard Project dated May 25, 2021.

Finder’s fees of $340,851 cash and 949,860 Warrants have been paid in connection with the Private Placement to qualified parties. The Warrants issued to the finders have the same terms as noted above. One Director of the Company participated in the Private Placement and will acquire, directly or indirectly, 285,714 Units. This transaction is exempt from the valuation and minority shareholder approval requirements of Multilateral Instrument 61-101 ("MI 61-101") by virtue of the exemptions contained in sections 5.5(a) and 5.7(1)(a) of MI 61-101 in that the fair market value of the consideration for the securities of the Company to be issued to the Insiders do not exceed 25% of its market capitalization.

All securities issued are subject to a statutory four-month and one day hold period from the date of issuance pursuant to applicable securities laws of Canada.

This news release does not constitute an offer to sell or a solicitation of an offer to sell any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”) or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.

Qualified Person Statement

All scientific and technical information contained in this news release was prepared and approved by Paul Ténière, P.Geo., President of Major Precious Metals Corp, who is a Qualified Person as defined in NI 43-101.

On behalf of the Board of Directors

MAJOR PRECIOUS METALS CORP.

Tony Williams
Chairman and CEO
Suite 810 - 789 West Pender Street
Vancouver, BC V6C 1H2
Ph: 1-877-475-0963
info@majorprecious.com

About Major Precious Metals Corp.

Major Precious Metals is a Canadian junior mining company listed on the Canadian Securities Exchange (“CSE”) and its common shares trade under the ticker symbol “SIZE”. The Company’s flagship project is the Skaergaard Project in Greenland containing one of the largest palladium and gold deposits outside the major PGM producing areas of Russia and South Africa. The Company is focused on accelerating the progress of the Skaergaard Project along the Mine Development Cycle and has recently initiated a further major work program of drilling and economic evaluation.

Additional information relating to Major Precious Metals is available at www.majorprecious.com and SEDAR at www.sedar.com.

The Canadian Securities Exchange has neither approved nor disapproved the contents of this news release.

Forward-looking Information Statement

This press release may include “forward-looking information” (as that term is defined by Canadian securities legislation). Forward-looking information is based on certain expectations and assumptions made by Major Precious Metals, including future plans for the exploration and development of mineral properties. Although Major Precious Metals believes that such expectations and assumptions are reasonable, investors should not rely unduly on such forward-looking information as the company cannot give any assurance that they will prove to be correct. Forward-looking statements in this press release are made as of the date of this press release. Major Precious Metals disclaims any intent or obligation to publicly update any forward-looking information (whether as a result of new information, future events or results, or otherwise) other than as required by applicable securities laws.

FAQ

What is the total amount raised in the private placement by Major Precious Metals?

Major Precious Metals raised $8,500,000.25 through the private placement of 24,285,715 units.

What will the funds from the private placement be used for?

The funds will be used to support a large drilling campaign at the Skaergaard Project in Greenland.

What are the key resource estimates for the Skaergaard Project?

The Skaergaard Project has 5.51 Moz of palladium equivalent in the Indicated Resource category and 14.4 Moz in the Inferred Resource category.

What is the exercise price of the warrants issued in the private placement?

The warrants issued in the private placement are priced at $0.70 per common share.

What are the implications of the warrant acceleration clause in the private placement?

If the common shares close at $1.20 or greater for ten consecutive trading days, Major Precious Metals can accelerate the expiry date of the warrants.