Tectonic Announces Strategic Investment by Crescat Capital as Part of a C$3 Million Non-Brokered Private Placement

Rhea-AI Summary

Tectonic Metals announced a strategic investment by Crescat Capital, totaling C$3,000,000 through a non-brokered private placement. The funding will support Tectonic's Tibbs and Seventymile properties while highlighting Crescat's commitment to the company's potential in mineral exploration. Each unit is priced at C$0.06, including common shares and warrants. The warrants can be exercised at C$0.10, with a two-year expiration. The offering is subject to TSXV conditions, emphasizing Tectonic's focus on advancing its gold projects in Alaska.

Positive

• Crescat Capital's C$3,000,000 investment demonstrates strong shareholder support.
• Funding will advance exploration at high-quality gold projects in Alaska.
• The company has a drill available for the 2022 season to expedite exploration.

Negative

• The share price of C$0.06 may indicate undervaluation or investor skepticism.
• The exercise price of C$0.10 for warrants may limit immediate capital influx if not met.

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

VANCOUVER, BC / ACCESSWIRE / April 25, 2022 / Tectonic Metals Inc. (TSX-V:TECT)(OTCQB:TETOF)(FSE: T15B) ("Tectonic" or the "Company") is excited to announce that strategic shareholder, Crescat Capital LLC ("Crescat"), in association with renowned geologist, Dr. Quinton Hennigh, is anchoring a C$3,000,000 non-brokered private placement of units issued by Tectonic.

Tony Reda, President & CEO of Tectonic, stated, "Crescat's continued support of Tectonic has once again demonstrated the technical merits of our projects, the strength of the Company's durable partnerships, and the importance of sophisticated strategic shareholders, who understand the challenges and recognize the opportunities in the junior mining industry. As existing cornerstone shareholders in Tectonic, Crescat, and Quinton Hennigh need no introduction to investors, and their continued endorsement speaks to the work we have done to advance our properties and the value-creating programs we are targeting this year. Make no mistake: Tectonic's goal is to find a mine in an ethical and responsible manner that benefits our shareholders and stakeholders."

Dr. Quinton Hennigh, Geologic and Technical Director of Crescat, stated, "Tectonic has assembled an enviable portfolio of high-quality gold projects in Alaska, all ready for drilling. They have a very strong technical team able to execute on multiple exploration campaigns, and importantly, they have a drill available for the 2022 season. We are fully supportive of their plans to drill at the Seventymile and Tibbs projects, both with exceptional potential for large-scale intrusive related and orogenic gold mineralization. Our participation in this financing shows our full commitment to the Company."

The Offering

The Company is conducting a non-brokered private placing of up to 50,000,000 Units (the "Units") at a price of C$0.06 per unit for aggregate gross proceeds of up to C$3,000,000 (the "Offering"). Each unit is comprised of one common share of Tectonic and one-half common share purchase warrant (each whole warrant, a "Warrant"). Each whole Warrant will be exercisable for a common share at an exercise price of C$0.10 and will expire two years from the closing date of the private placement.

The Warrants are subject to an acceleration clause whereby if the volume-weighted average trading price of Tectonic's common shares on the TSX Venture Exchange (the "TSXV") is C$0.20 or greater for a period of twenty (20) consecutive trading days (whether or not trading occurs on all such days), Tectonic has the right to accelerate the expiry date of the Warrants to 30 days from the date of issuance of a news release by Tectonic announcing the accelerated exercise period.

The net proceeds of the Offering will be used to advance the Company's Tibbs and Seventymile properties and for general working capital. Closing is subject to customary conditions, including the conditional acceptance of the TSXV. All securities issuable under the Offering will be subject to a four-month hold period from the date of closing.

This news release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. This news release shall not constitute an offer to sell or the solicitation of an offer to buy any securities in the United States. The securities being offered have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, or under any state securities laws in the United States, and such securities may not be offered or sold within the United States absent registration under U.S. federal and state securities laws or an applicable exemption from such U.S. registration requirements.

About Crescat

Crescat is a global macro asset management firm headquartered in Denver, Colorado, which deploys tactical investment themes based on proprietary value-driven equity and macro models. Crescat's investment goals are to provide industry-leading absolute, and risk-adjusted returns over complete business cycles with low correlation to common benchmarks, and they apply their investment process across a mix of asset classes and strategies. Crescat is taking activist stakes in the precious metals exploration industry today as one of its key macro themes.

About Tectonic

Tectonic Metals Inc. is a mineral exploration company created and operated by an experienced and well-respected technical and financial team with a track record of wealth creation for shareholders. Key members of the Tectonic team were involved with Kaminak Gold Corporation, the Company that raised C$165 million to fund the acquisition, discovery, and advancement of the Coffee Gold Project in the Yukon Territory through to the completion of a bankable feasibility study before selling the multi-million-ounce gold project to Goldcorp Inc. (now Newmont) for C$520 million in 2016. Tectonic is focused on the acquisition, exploration, discovery, and development of mineral resources from district-scale projects in politically stable jurisdictions that have the potential to host world-class orebodies.

Whether at home or at work, the Tectonic team is grounded on the following core values: passion, integrity, patience, focus, perseverance, honesty, fairness, accountability, respect and a play big mindset. The Company works for its shareholders and is committed to creating value for them.

To learn more about Tectonic, please click here.

On behalf of Tectonic Metals Inc.,
Tony Reda
President and Chief Executive Officer

For further information about Tectonic Metals Inc. or this news release, please visit our website at www.tectonicmetals.com or contact Tony Reda, President & CEO of Tectonic, or Bill Stormont, Investor Relations, at toll-free at 1.888.685.8558 or by email at info@tectonicmetals.com.

Facebook: https://www.facebook.com/TectonicMetals/
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Cautionary Note Regarding Forward-Looking Statements and Historical Information

Certain information in this news release constitutes forward-looking information and statements under applicable securities law. Any statements that are contained in this news release that are not statements of historical fact may be deemed to be forward-looking statements. Forward-looking statements are often identified by terms such as "may", "should", "anticipate", "expect", "intend" and similar expressions and include, but are not limited to, statements with respect to the size and completion of the Offering, the use of proceeds of the Offering, Crescat's participation in the Offering, the potential for mineralization at Tectonic's projects, any future exploration activities and the size. The Company makes no representation or warranty regarding the accuracy or completeness of any historical data from prior exploration undertaken by others other than the company and has not taken any steps to verify, the adequacy, accuracy or completeness of the information provided herein and, under no circumstances, will be liable for any inaccuracies or omissions in any such information or data, any delays or errors in the transmission thereof, or any loss or direct, indirect, incidental, special or consequential damages caused by reliance on this information or the risks arising from the stock market.

Forward-looking information is not a guarantee of future performance and is based upon a number of estimates and assumptions of management at the date the statements are made including, among others, assumptions about future prices of gold and other metal prices, currency exchange rates and interest rates, favourable operating conditions, political stability, obtaining governmental and other approvals and financing on time, obtaining required licenses and permits, labour stability, stability in market conditions, availability of equipment, accuracy of any mineral resources, successful resolution of disputes and anticipated costs and expenditures. Many assumptions are based on factors and events that are not within the control of Tectonic, and there is no assurance they will prove to be correct.

Although Tectonic considers these beliefs and assumptions to be reasonable based on information currently available to it, they may prove to be incorrect, and the forward-looking statements in this release are subject to numerous risks, uncertainties and other factors that may cause future results to differ materially from those expressed or implied in such forward-looking statements. Forward-looking statements necessarily involve known and unknown risks, including, without limitation: the Company's ability to implement its business strategies; risks associated with mineral exploration and production; risks associated with general economic conditions; adverse industry events; marketing and transportation costs; loss of markets; volatility of commodity prices; inability to access sufficient capital from internal and external sources, and/or inability to access sufficient capital on favourable terms; industry and government regulation; changes in legislation, income tax and regulatory matters; competition; currency and interest rate fluctuations; and other risks.

Readers are further cautioned not to place undue reliance on forward-looking statements as there can be no assurance that the plans, intentions or expectations upon which they are placed will occur. Such information, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated. Forward-looking statements contained in this news release are expressly qualified by this cautionary statement. Although Tectonic has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information. Tectonic does not undertake to update any forward-looking information, except in accordance with applicable securities laws.

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

SOURCE: Tectonic Metals Inc.

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FAQ

What is the purpose of Tectonic's C$3,000,000 private placement?

The private placement aims to fund the advancement of Tectonic's Tibbs and Seventymile properties.

Who is leading the investment in Tectonic's private placement?

The investment is anchored by Crescat Capital, alongside geologist Dr. Quinton Hennigh.

What are the terms of the warrants issued in Tectonic's placement?

Warrants are exercisable at C$0.10 and will expire two years from the closing date.

When is the closing date for Tectonic's private placement?

Closing is subject to customary conditions and conditional acceptance of the TSXV.

How will Tectonic use the funds from the private placement?

The funds will be used to advance exploration projects and for general working capital.