Mistango Welcomes Eric Sprott as an Investor and Closes $2 Million Financing
TORONTO, Feb. 28, 2020 /CNW/ - Mistango River Resources Inc. (CSE: MIS, "Mistango" or the "Company") is pleased to announce it has closed a $2,038,999.54 non-brokered private placement financing.
Click here to view Mistango's Corporate Presentation
Mistango issued 31,369,224 units consisting of one common share of Mistango and one share purchase warrant, with each whole warrant exercisable for up to 2 years after closing at an exercise price of $0.08 for one common share of Mistango. All common shares to be issued pursuant to the Private Placement are subject to a statutory four (4) month and one day hold period.
Under the Private Placement, insiders of the Company have purchased a total of 7,692,308 shares. Their participation 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 to be distributed in the Private Placement nor the consideration to be received for those securities, in so far as the Private Placement involves the insiders, exceeds 25% of the Company's market capitalization.
Mr. Eric Sprott, through 2176423 Ontario Ltd., a corporation which is beneficially owned by him, acquired 15,384,616 Units for a total consideration of $1,000,000. Following the completion of the private placement, Mr. Sprott beneficially owns and controls 15,384,616 Common Shares and 15,384616 Warrants of the Company representing approximately 14.8% of the issued and outstanding Common Shares of the Company on a non-diluted basis and approximately 25.8% of the issued and outstanding Common Shares on a partially diluted basis. Prior to the Financing, Mr. Sprott did not beneficially own or control any shares of the Company.
The Units were acquired by Sprott for investment purposes. Mr. Sprott has a long-term view of the investment and may acquire additional securities of Mistango River including on the open market or through private acquisitions or sell securities of Mistango River 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 Sprott's early warning report will appear on Mistango River profile on SEDAR and may also be obtained by calling Mr. Sprott's office at (416) 945-3294 (200 Bay Street, Suite 2600, Royal Bank Plaza, South Tower, Toronto, Ontario M5J 2J1).
The Company did not file a material change report more than 21 days before the expected closing of the private placement as the details of the private placement and the participation therein by related parties of the Company were not settled until shortly prior to closing and the Company wished to close on an expedited basis for sound business reasons and in a timeframe consistent with usual market practices for transactions of this nature.
Mistango is a Canadian-based exploration and development company focusing on its Eby-Baldwin and Omega Mine projects near Kirkland Lake, Ontario.
SOURCE Mistango River Resources Inc.
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