Tower Announces Closing of $408,000 Non-Brokered Flow-Through Private Placement

Rhea-AI Summary

Tower Resources has completed a non-brokered private placement, raising CDN$408,000. The offering included 3,400,000 flow-through units at CDN$0.12 per unit, each consisting of a common share and a warrant. These warrants allow the holder to purchase additional shares at CDN$0.18 until July 3, 2026. The funds will be used for Canadian Exploration Expenses. A finder's fee of CDN$24,480 and 204,000 warrants were issued to non-related parties. All securities from the offering are subject to a hold period until November 4, 2024.

Positive

• Raised CDN$408,000 through a non-brokered private placement.
• Issued 3,400,000 flow-through units at CDN$0.12 per unit.
• Warrants included in the units allow purchase of shares at CDN$0.18 until July 3, 2026.
• Net proceeds allocated for Canadian Exploration Expenses.

Negative

• Paid CDN$24,480 in finder’s fees, equal to 6% of the gross proceeds.
• Issued 204,000 warrants as finder's fee, equal to 6% of the total FT Units sold.

Vancouver, British Columbia--(Newsfile Corp. - July 3, 2024) - Tower Resources Ltd. (TSXV: TWR) ("Tower" or the "Company") announces it has closed a flow-through non-brokered private placement for aggregate gross proceeds of $408,000 (the "Offering"). Under the Offering, the Company issued 3,400,000 flow-through units (each a "FT Unit") at a price of CDN$0.12 per FT Unit. Each FT Unit is comprised of one (1) common share in the capital of the Company that qualifies as a "flow-through share" for the purposes of the Income Tax Act (Canada) and one (1) non-transferable common share purchase warrant (each, a "Warrant"). Each Warrant entitles the holder to purchase one common share in the capital of the Company (each a "Common Share") at CDN$0.18 until July 3, 2026. The Company intends to use the net proceeds from the Offering for expenditures which qualify as Canadian Exploration Expenses, within the meaning of the Income Tax Act (Canada).

In connection with the Offering, the Company paid a finder's fee in cash of CDN$24,480, equal to 6% of the gross proceeds raised, and issued 204,000 Warrants, equal to 6% of the total number of FT Units sold, to qualified non-related parties, in accordance with the policies of the TSX Venture Exchange (the "Exchange").

All securities issued under the Offering, including securities issuable on exercise thereof, will be subject to a hold period expiring November 4, 2024, in accordance with the rules and policies of the Exchange and applicable Canadian securities laws.

About Tower Resources

Tower is a Canadian based mineral exploration company focused on the discovery and advancement of economic mineral projects in the Americas. The Company's key exploration assets, all in B.C., are the Rabbit North copper-gold porphyry project located between the New Afton copper-gold and Highland Valley copper mines in the Kamloops mining district, the Nechako porphyry-associated gold-silver project near Artemis' Blackwater project and the More Creek epithermal gold project on the critical "red line" structural zone connecting the mineral deposits of the Golden Triangle.

On behalf of the Board of Directors
Tower Resources Ltd.

Joe Dhami, President and CEO
(778) 996-4730
www.towerresources.ca

Reader Advisory

This news release contains statements that constitute "forward-looking information," including statements regarding the plans, intentions, beliefs, and current expectations of the Company, its directors, or its officers with respect to the future business activities of the Company. The words "may," "would," "could," "will," "intend," "plan," "anticipate," "believe," "estimate," "expect," "must," "next," "propose," "new," "potential," "prospective," "target," "future," "verge," "favourable," "implications," and "ongoing," and similar expressions, as they relate to the Company or its management, are intended to identify such forward-looking information. Without limiting the generality of the foregoing statements, the proposed use of the proceeds of the Offering, is forward-looking information. Investors are cautioned that statements including forward-looking information are not guarantees of future business activities and involve risks and uncertainties, and that the Company's future business activities may differ materially from those described in the forward-looking information as a result of various factors, including but not limited to fluctuations in market prices, successes of the operations of the Company, continued availability of capital and financing, and general economic, market, and business conditions. There can be no assurances that such forward-looking information will prove accurate, and therefore, readers are advised to rely on their own evaluation of the risks and uncertainties. The Company does not assume any obligation to update any forward-looking information except as required under the applicable securities laws.

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.

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES. ANY FAILURE TO COMPLY WITH THIS RESTRICTION MAY CONSTITUTE A VIOLATION OF U.S. SECURITIES LAWS.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/215405

FAQ

What is the total amount raised by Tower Resources in the latest private placement?

Tower Resources raised CDN$408,000 in the latest non-brokered private placement.

How many flow-through units were issued by Tower Resources in the recent offering?

Tower Resources issued 3,400,000 flow-through units in the recent offering.

At what price were the flow-through units of Tower Resources offered?

The flow-through units were offered at CDN$0.12 per unit.

What is the exercise price of the warrants issued by Tower Resources?

The exercise price of the warrants is CDN$0.18.

Until when can the warrants issued by Tower Resources be exercised?

The warrants can be exercised until July 3, 2026.

What will Tower Resources use the proceeds from the private placement for?

Tower Resources will use the proceeds for Canadian Exploration Expenses.

How much finder's fee did Tower Resources pay in the recent private placement?

Tower Resources paid a finder's fee of CDN$24,480.

How many warrants were issued as part of the finder's fee in the recent Tower Resources offering?

Tower Resources issued 204,000 warrants as part of the finder's fee.

What is the hold period for the securities issued by Tower Resources in the private placement?

The hold period for the securities expires on November 4, 2024.