Symbol: TSX: ME
TORONTO, Sept. 20, 2019 /CNW/ - Moneta Porcupine
Mines Inc. (TSX:ME) (OTC:MPUCF) (XETRA:MOP) ("Moneta" or the
"Company") is pleased to announce the closing of a non-brokered
private placement financing with Eric
Sprott of (a) 4,545,455 common shares at a price of
$0.11 per share (the "Shares")
and (b) 15,625,000 common shares at a price of $0.16 per share, issued on a flow-through basis
(the "Flow Through Shares"), for total gross proceeds of
$3.0 million and an aggregate total
of 20,170,455 shares (the "Placement").
The placement increases Mr. Sprott's shareholding to 27,870,455
shares, or 9.0% of the total shares outstanding.
Gary O'Connor, CEO and Chief
Geologist stated "We are pleased to have the continued confidence
of Eric Sprott as a strategic
long-term investor in Moneta. In addition to a forthcoming resource
estimate update at South West, these additional funds will allow us
to expand and accelerate the drill program to test the resource
expansion potential at the immediately adjacent deposits and test
new zones of mineralization identified on our Golden Highway
Project".
The proceeds of the Flow Through Shares will be used to incur
Canadian exploration expenditures that are "flow-through mining
expenditures" (as such terms are defined in the Income Tax
Act (Canada)) on the Company's
Golden Highway project, which will be renounced to the subscribers
with an effective date no later than December 31, 2019, in the aggregate amount of not
less than the total amount of the gross proceeds raised from the
Flow Through Shares. The Placement is subject to a standard four
month hold period and final regulatory approval. Paradigm Capital
acted as Moneta's financial advisor in connection with the
Placement.
About Moneta
The Company holds a 100% interest in 6
core gold projects strategically located along the Destor-Porcupine
Fault Zone in the Timmins Gold Camp with over 85 million ounces of
past gold production. The projects consist of the Golden Highway,
North Tisdale, Nighthawk Lake,
DeSantis East, Kayorum and Denton
projects. The Golden Highway Project covers 12 kilometres of
prospective ground along the DPFZ of which 4 km hosts the current
43-101 mineral resource estimate comprised of an indicated resource
of 383,400 ounces gold contained within 2.59 Mt @ 4.61 g/t Au and
873,200 ounces gold contained within 6.46 Mt @ 4.21 g/t Au in the
inferred category reported at a 3.00 g/t Au cut-off.
The Company's public documents may be accessed at www.sedar.com.
For further information on the Company, please visit our website at
www.monetaporcupine.com or email us at
info@monetaporcupine.com.
This news release includes certain forward-looking
information and forward-looking statements, collectively
"forward-looking statements" within the meaning of
applicable Canadian securities legislation. Forward-looking
statements are frequently identified by such words as "may",
"will", "plan", "expect", "anticipate", "estimate", "intend" and
similar words referring to future events and results.
Forward-looking statements include, but are not limited to
information with respect to the future performance of the business,
its operations and financial performance and condition such as the
Company's drilling program and the timing and results thereof; and
the ability of the Company to finance and carry out its anticipated
goals and objectives.
SOURCE Moneta Porcupine Mines Inc.
