Victory Resources Announces Non-Brokered Private Placement

Rhea-AI Summary

Victory Resources Corporation (OTC: VRCFF) has announced a non-brokered private placement to raise up to $1,000,000 by issuing up to 18,181,818 units at $0.055 each. Each unit comprises one common share and a warrant to purchase an additional share at CDN $0.07 for 24 months. Funds will support exploration on the Smokey Lithium Property in Nevada and general working capital. The offering includes finders’ fees and is subject to a four-month hold period.

Positive

• Private placement of up to $1,000,000 will strengthen financial position.
• Funds directed towards ongoing exploration of the Smokey Lithium Property, potentially enhancing asset value.

Negative

• Dilution of existing shares may occur with the issuance of new units.
• The success of the exploration is uncertain and dependent on various market factors.

VANCOUVER, BC / ACCESSWIRE / November 2, 2021 / Victory Resources Corporation (CSE:VR)(FWB:VR61)(OTC PINK:VRCFF) ("Victory" or the "Company") announces a non-brokered private placement of up to 18,181,818 units (each a "Unit") at a price of $0.055 per Unit for gross proceeds of up to $1,000,000. Each Unit will consist of one common share and one common share purchase warrant (each a "Warrant"). Each Warrant entitles the holder to purchase one additional common share of the Company at a price of CDN $0.07 per share for a period of 24 months from the date of closing and are subject to an acceleration clause that may be triggered (after the initial hold period of the shares has expired) should the shares trade at or above $0.20 for a period of 10 days.

Finder's fees may be paid in both cash and finders warrants (having the same terms as the Warrants) in connection with a portion of this private placement pursuant to the policies of the CSE.

The proceeds from the sale of Units will be used for the on going exploration and drilling program on its Smokey Lithium Property located in Esmeralda County, Nevada, as well as towards general working capital in furtherance of the Company's business.

The securities to be issued under the placement will be subject to a four-month statutory hold period in accordance with applicable securities laws.

About Victory Resources Corporation

Victory is a publicly traded junior international mining corporation with interests in North America. The company is currently developing its existing projects including its recently optioned Loner property in Nevada adjacent to Goldbanks, its recently acquired Smokey Lithium property in Nevada adjacent to American Lithium's flagship property, its British Columbia Mal-Wen property and its other properties including, Black Diablo in Nevada, Hammond Reef South in Ontario adjoining Agnico Eagle's Hammond Reef mine, and Lac Simard in Quebec within 20 k of 3 operating gold mines including Agnico Eagle's Goldex, Canadian Malartic mines and Eldorado Gold's Lamaque mine.

For further information, please contact:

Mark Ireton, President
Telephone: +1 (236) 317 2822 or
TOLL FREE 1 (855) 665-GOLD (4653)
E-mail: IR@victoryresourcescorp.com

Neither the Canadian Securities Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this release.

SOURCE: Victory Resources Corp.

View source version on accesswire.com:
https://www.accesswire.com/670853/Victory-Resources-Announces-Non-Brokered-Private-Placement

FAQ

What is the purpose of Victory Resources Corporation's private placement announced on November 2, 2021?

The private placement aims to raise up to $1,000,000 for exploration on the Smokey Lithium Property and for general working capital.

What are the terms of the warrants issued in the private placement for VRCFF?

Each warrant allows the purchase of an additional share at CDN $0.07 for 24 months.

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

Funds will be used for exploration drilling at the Smokey Lithium Property and for general working capital.

What is the impact of the private placement on VRCFF shareholders?

The private placement may lead to dilution of existing shares due to the issuance of new units.

Is there a hold period for the securities issued in the private placement by Victory Resources?

Yes, there is a four-month statutory hold period for the securities.