Strongbow Exploration Inc. (TSX-V: SBW) is pleased to announce that it has closed a second and third tranche of the non-brokered private placement financing announced May 31, 2016 for gross proceeds of $490,375. With the June 28th closing, proceeds received to date total $2,285,375. Strongbow issued a total of 18,283,000 units at $0.125 per unit; no further issuances pursuant to the May 31st financing will occur.
On July 15, 2016, Strongbow issued 3,773,000 Units at a price of $0.125 per Unit for gross proceeds of $471,625; on July 19, 2016, Strongbow issued 150,000 units at a price of $0.125 per Unit for gross proceeds of $18,750. Each Unit consists of one common share and one whole share purchase warrant (the "Subscriber Warrant"). Each Subscriber Warrant will allow the holder to purchase one common share of Strongbow at a price of $0.20. The Subscriber Warrants are exercisable until July 15, 2019 and July 19, 2019, subject to the Acceleration Right described below. Proceeds of the financing will be used for work at the Strongbow's recently acquired South Crofty tin project (see Strongbow news release dated July 12, 2016) and for general working capital.
Strongbow paid cash commissions of $11,000 and issued 88,000 finder's warrants, exercisable on the same terms as the Subscriber Warrants, in connection with the second closing on July 15, 2016.
All securities issued as part of this private placement and any securities issuable upon exercise of the warrants are subject to a four month hold period which will expire November 12, 2016 (July 15th closing) and November 20, 2016 (July 19th closing) .
If on any 20 consecutive trading days the closing price of the Company's common shares (or the closing bid, if no sales were reported on a trading day) as quoted on the TSXV (or such other stock exchange, quotation system or market on which such shares are then listed) is greater than $0.50 during the term of the Warrants, then the Company may accelerate the expiry date of the Warrants to the 30th day after the date on which the Company gives notice to the subscriber of such acceleration in accordance with the Warrant. Any Warrants not exercised on or before such 30th business day will expire and will no longer be exercisable to acquire shares.
For additional information please contact:
|Chief Executive Officer|
|(604) 638 8005|
|Blytheweigh (Financial PR/IR – London)|
|+44 (0) 207 138 3204|
ON BEHALF OF THE BOARD OF DIRECTORS
"Richard D. Williams"
Richard D. Williams, P.Geo
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.
This news release contains "forward-looking statements" including but not limited to statements with respect to Strongbow's plans to acquire the South Crofty tin project and to complete a non-brokered private placement for gross proceeds of up to $5,000,000.
Forward-looking statements, while based on management's best estimates and assumptions, are subject to risks and uncertainties that may cause actual results to be materially different from those expressed or implied by such forward-looking statements, including but not limited to: risks related to receipt of regulatory approvals, the successful integration of acquisitions; risks related to general economic and market conditions; risks related to the availability of financing; the timing and content of upcoming work programs; actual results of proposed exploration activities; possible variations in mineral resources or grade; failure of plant, equipment or processes to operate as anticipated; accidents, labour disputes, title disputes, claims and limitations on insurance coverage and other risks of the mining industry; changes in national and local government regulation of mining operations, tax rules and regulations.
Although Strongbow has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. Strongbow undertakes no obligation or responsibility to update forward-looking statements, except as required by law.