MONTREAL, Oct. 30, 2020 /CNW Telbec/ - Tarku
Resources Ltd (TSX-V: TKU) (the "Company" or "Tarku") is
pleased to announce that it has closed its previously announced
non-brokered private placement of gross proceeds of $2,500,000 (the "Offering").
The Company issued 25,000,000 units (each a "Unit") at
$0.10 per Unit for total gross
proceeds of $2,500,000. Each Unit
consists of one common share in the capital of the Company (a
"Common Share") and one-half (1/2) of one common share purchase
warrant (each whole common share purchase share a "Warrant") of the
Company. Each whole Warrant is exercisable to acquire one Common
Share (a "Warrant Share") at an exercise price of $0.15 until October 30,
2022. The net proceeds raised through the issue of Units
will be to advance the Company's exploration properties and for
general working capital purposes.
All securities issued pursuant to the Private Placement with be
legended with a hold period of four (4) months and one day from the
date of issuance. The securities offered have not been registered
under the U.S. Securities Act of 1933, as amended, and may not be
offered or sold in the United
States absent registration or an applicable exemption from
the registration requirements. This press 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 State in which
such offer, solicitation or sale would be unlawful.
The Company paid finder's fees in a cash commission equal to 7%
of aggregate proceeds from the sale of Units sourced by the finder
totaling $150,904.69, as well as
finder's warrants (the "Finder's Warrants") in an amount of
1,312,500 which is equal to 7% of the aggregate number of Units
sourced by the finder pursuant to the Private Placement. Each
Finder's Warrant is exercisable to purchase one Common Share at an
exercise price of $0.15 until
October 30, 2022.
Strategic Investment by Eric
Sprott
Eric Sprott, through 2176423
Ontario Ltd., a corporation which is beneficially owned by him,
acquired 10,550,000 Units pursuant to the Private Placement for
$1,055,000. Prior to the Private
Placement, Mr. Sprott did not beneficially own or control any
securities of the Company. As a result of the Private Placement,
Mr. Sprott beneficially owns and controls 10,550,000 Common Shares
of the Company and 5,275,000 Warrants representing approximately
19.9% of the issued and outstanding Common Shares of Tarku on a
non-diluted basis and 27.1% on a partially diluted basis.
Mr. Sprott has undertaken that the Warrants acquired by 2176423
will only be exercised to the extent that the Warrant Shares issued
upon such exercise would not result in him becoming a "Control
Person" (as such term is defined in the policies of the TSX Venture
Exchange ("TSXV") of the Company, unless prior approval of the TSXV
and disinterested shareholders (excluding the votes of 2176423
Ontario Ltd. and its "Associates" and "Affiliates", as those terms
are defined by the TSXV) has been received. The Company has
undertaken to bring and support the matter before the next Special
Meeting of shareholders which is anticipated to be convened in
January 2021.
The Units were acquired by Mr. Sprott, through 2176423 Ontario
Ltd. for investment purposes. Mr. Sprott has a long-term view of
the investment and may acquire additional securities of the Company
including on the open market or through private acquisitions or
sell securities of the Company including 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 Ltd.'s early warning report will
appear on the Company's profile on SEDAR and may also be obtained
by calling (416) 945-3294 (200 Bay Street, Suite 2600, Royal Bank
Plaza, South Tower, Toronto,
Ontario M5J 2J1).
About Tarku Resources Ltd. (TSX.V : TKU)
Tarku is an exploration company focused on making new
discoveries in favourable mining jurisdictions. In Quebec, Tarku owns 100% on the "Three
A's" exploration projects, (Apollo, Admiral and Atlas
Projects), in the Matagami
greenstone belt, which has been interpreted by management as the
eastern extension of the Detour Belt, and which has seen recent
exploration successes by Midland Exploration Inc., Wallbridge
Mining Company Ltd., Probe Metals Inc. In Arizona, Tarku owns the option to acquire 75%
on 20km2 in the Silver Mining District of Tombstone.
Website:
www.tarkuresources.com
LinkedIn:
https://www.linkedin.com/company/11151575/
Facebook:
https://www.facebook.com/tarkuresources/
Twitter:
https://twitter.com/TarkuResources
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
This press release may contain forward-looking statements
that are subject to known and unknown risks and uncertainties that
could cause actual results and activities to vary materially from
targeted results and planning. Such risks and uncertainties include
those described in Tarku's periodic reports including the annual
report or in the filings made by Tarku from time to time with
securities regulatory authorities.
SOURCE Tarku Resources Ltd.
