Mr. Brian Groves reports
GENESIS CLOSES $3.25 MILLION PRIVATE PLACEMENT AND WELCOMES ERIC SPROTT AS SIGNIFICANT SHAREHOLDER
Genesis Metals Corp. has closed its $3.25-million non-brokered private placement previously announced on May 24, 2017.
Brian Groves, chief executive officer of Genesis, commented: "We are pleased to have Eric Sprott, Delbrook and other large, strategic institutional investors participate in this financing. The proceeds of this financing allows Genesis to commence fieldwork at Chevrier that will include drilling, trenching, prospecting and mapping."
The company issued a total of 7,276,714 units at the price of 14 cents per unit for gross proceeds of $1,018,320 and 13,959,000 flow-through (FT) units at the price of 16 cents per FT unit for gross proceeds of $2,233,440.
Each unit consists of one common share of the company and one-half of one warrant, each whole such warrant exercisable to purchase one common share at 20 cents per share until June 5, 2019.
Each FT unit consists of one flow-through common share of the company and one-half of one warrant, each whole such warrant exercisable to purchase one non-flow-through common share at 23 cents per share until June 5, 2019.
In connection with the financing, finders' fees of $121,732.80 ($117,672.80 to Medalist Capital, $2,100 to Raymond James and $1,960 to Echelon Wealth Partners) and the issuance of a total of 146,160 finders' warrants at 14 cents and 632,940 finders' warrants at 16 cents.(751,100 warrants to Medalist Capital, 14,000 warrants to Raymond James and 14,000 warrants to Echelon Wealth Partners) were paid. Each finders' warrant entitles the holder to purchase one common share of the company for a period of two years.
All securities issued in connection the financing (including shares, warrants, finders' warrants, and any shares issued upon the exercise of warrants and finders' warrants) are subject to a hold period and may not be traded until Oct. 6, 2017, except as permitted by applicable securities legislation and the rules and policies of the TSX Venture Exchange.
The company intends to use the net proceeds of the financing to advance its Chevrier gold project and for general working capital purposes.
Upon completion of the financing, Mr. Sprott, through 2176423 Ontario Ltd., a corporation which is beneficially owned by him, acquired 4.85 million common shares and 2,425,000 warrants, representing approximately 7.2 per cent of the issued and outstanding common shares of the company on a non-diluted basis and 10.4 per cent on a partially diluted basis. The above percentages are calculated based on 67,651,204 common shares issued and outstanding after giving effect to the financing. Prior to the financing, Mr. Sprott did not own any securities of the company.
Upon completion of the financing, Delbrook Resource Opportunities Fund acquired 3.48 million common shares and 1.74 million warrants, which, together with Delbrook's existing holdings of 3.85 million common shares, total 7.33 million common shares and 1.74 million warrants, representing approximately 10.83 per cent of the issued and outstanding common shares of the company on a non-diluted basis and 13.07 per cent on a partially diluted basis. The above percentages are calculated based on 67,651,204 common shares issued and outstanding after giving effect to the financing.
The common shares and warrants were acquired by Mr. Sprott, through 2176423 Ontario, for investment purposes. Mr. Sprott has a long-term view of the investment and may acquire additional securities of the company, either on the open market or through private acquisitions, or sell securities of the company, either on the open market or through private dispositions, in the future, depending on market conditions, reformulation of plans and/or other relevant factors. A copy of 2176423 Ontario's early warning report will appear on the company's profile on SEDAR and may also be obtained by calling 416-362-7172 (200 Bay St., suite 2600, Royal Bank Plaza, south tower, Toronto, Ont., M5J 2J2).
The common shares and warrants were acquired by Delbrook for investment purposes. Delbrook has a long-term view of the investment and may acquire additional securities of the company, either on the open market or through private acquisitions, or sell securities of the company, either on the open market or through private dispositions, in the future, depending on market conditions, reformulation of plans and/or other relevant factors. A copy of Delbrook's early warning report will appear on the company's profile on SEDAR and may also be obtained by calling 604-229-1450 (650-1021 West Hastings St., Vancouver, B.C., V6E 0C3).
About Genesis Metals Corp.
The company is focused on advancing the Chevrier gold deposit, located 35 kilometres southwest of Chibougamau, Que. The project is located along the Fancamp deformation zone, 15 kilometres northeast of the high-grade Monster Lake gold discovery. Genesis also owns 100 per cent the 203-square-kilometre October gold project, located in the southern Swayze greenstone belt in Benton township, Ontario. This project is located 35 kilometres northwest of Iamgold Corp.'s Cote Lake deposit and 50 kilometres southeast of Goldcorp Inc.'s Borden gold deposit.
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