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UNITED STATES./
VANCOUVER, BC, Oct. 8, 2020 /CNW/ - Victory Metals
Inc. (TSX-V: VMX) ("Victory" or the "Company")
announces it will be closing a non-brokered private placement
financing previously announced on September
16, 2020, raising gross proceeds of $2,000,000 through the issuance of 5,000,000
common shares in the capital of the Company (the "Shares")
at a price of $0.40 per Share (the
"Private Placement").
In connection with the Private Placement, cash finder's fees in
the total amount of $6,900.00 payable
to eligible finders are applicable. The net proceeds of the Private
Placement will be used to advance the Company's Iron Point Vanadium
Project and for general working capital purposes.
An insider of the Company, Palisades Goldcorp Ltd., is acquiring
2,600,000 shares. The participation by an insider in the Private
Placement is considered to be a "related party transaction" as
defined under Multilateral Instrument 61-101 ("MI 61-101").
The transaction is exempt from the formal valuation and minority
shareholder approval requirements of MI 61-101, as neither the fair
market value of the securities being issued, nor the consideration
being paid exceeds 25% of Victory's market capitalization. The
material change report in connection with related party's
participation in the Private Placement was not filed 21 days in
advance of the closing of the Private Placement for the purposes of
Section 5.2(2) of MI 61-101 on the basis that the relevant
subscription agreement under the Private Placement was not
available to the Company until shortly before closing.
All securities to be issued in respect to the Private Placement
will be subject to a hold period expiring February 9, 2021, being the date that is four
months and one day from the closing date of the Private Placement
in accordance with applicable securities laws. Closing of the
Private Placement is subject to final acceptance by the TSX Venture
Exchange.
About Victory Metals
Victory owns a 100% interest in the Iron Point Vanadium Project,
located 22 miles east of Winnemucca,
Nevada. The project is located within a few miles of
Interstate 80, has high voltage electric power lines running
through the project area and a railroad line passing across the
northern property boundary. The Company is well financed to advance
the project through resource estimation and initial feasibility
study work. Victory has a proven capital markets and mining team
led by Executive Chairman Paul
Matysek. Major shareholders include Palisades Goldcorp
(48%), and management, directors and founders (27%).
Please see the Company's website at www.victorymetals.ca.
On Behalf of the Board of Directors of
VICTORY METALS INC.
Paul Matysek
Executive Chairman and Director
Neither the 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.
Cautionary Statements Regarding Forward Looking
Information
This news release contains certain "forward-looking
information" and "forward-looking statements" (collectively
"forward-looking statements") within the meaning of applicable
securities legislation. All statements, other than statements of
historical fact, included herein, without limitation, statements
relating the future operating or financial performance of the
Company, are forward-looking statements. Forward-looking statements
are frequently, but not always, identified by words such as
"expects", "anticipates", "believes", "intends", "estimates",
"potential", "possible", and similar expressions, or statements
that events, conditions, or results "will", "may", "could", or
"should" occur or be achieved. Forward-looking statements in this
news release relate to, among other things, the completion of the
Private Placement and the use of proceeds of the Private Placement.
Actual future results may differ materially. There can be no
assurance that such statements will prove to be accurate, and
actual results and future events could differ materially from those
anticipated in such statements. Forward-looking statements reflect
the beliefs, opinions and projections on the date the statements
are made and are based upon a number of assumptions and estimates
that, while considered reasonable by the Company, are inherently
subject to significant business, economic, competitive, political
and social uncertainties and contingencies. Many factors, both
known and unknown, could cause actual results, performance or
achievements to be materially different from the results,
performance or achievements that are or may be expressed or implied
by such forward-looking statements and the parties have made
assumptions and estimates based on or related to many of these
factors. Such factors include, without limitation, the Company's
failure to find suitable purchasers for the Private Placement, the
failure of the TSX Venture Exchange to approve the Private
Placement and management's discretion to reallocate the use of
proceeds. Readers should not place undue reliance on the
forward-looking statements and information contained in this news
release concerning these items. The Company does not assume any
obligation to update the forward-looking statements of beliefs,
opinions, projections, or other factors, should they change, except
as required by applicable securities laws.
SOURCE Victory Metals Inc
