Benz Mining announces private placements up to C$10m for Eastmain

Benz Mining Corp. has announced a non-brokered private placement of up to 11,500,000 units issued on a flow-through basis at a price of $0.875 per Unit for gross proceeds of up to $10,062,500.

Each FT Unit will consist of one common share of the Company and 0.5 common share purchase warrant. Each Warrant will entitle the holder to acquire one non-flow through common share of the Company for two years from the closing of the Offering at a price of $1.00.

The gross proceeds received by the Company from the sale of the FT Units will be used to incur Canadian Exploration Expenses ("CEE") that are "flow-through mining expenditures" (as such terms are defined in the Income Tax Act (Canada)) on the Company's properties in Québec, by December 31st 2021 and renounce such expenditures to the subscribers effective December 31, 2020.

In addition to the Offering of FT Units, the Company will also undertake a non-brokered private placement of up to 400,000 units (the "Units") at an issue price of $0.50 per Unit for gross proceeds of up to $200,000 (the "Private Placement"). Each Unit will consist of one common share of the Company and 0.5 common share purchase warrant which will entitle the holder to acquire one common share of the Company for two years from the closing of the Private Placement at a price of $1.00.

The Offering and Private Placement are both scheduled to close on or about October 29, 2020 ("Closing") and are subject to certain conditions including, but not limited to, the receipt of all necessary regulatory and other approvals including the approval of the TSX Venture Exchange (the "Exchange").

The Company is also pleased to advise that it has received In-principle advice from the Australian Securities Exchange ("ASX") confirming that Benz meets the suitability criteria to list on the ASX. The Company intends to issue 4,000,000 Units at an issue price of A$0.50 per Unit for gross proceeds of up to A$2 million to be raised under a Prospectus in Australia. This is expected to be completed on, or around the Closing date. 

Benz Mining Corp. brings together a strong team of geoscientists and finance professionals with a focused strategy to acquire and develop mineral projects with an emphasis on safe, low risk jurisdictions favorable to mining development. Benz is earning a 100% interest from Eastmain Resources Inc. in the former producing high grade Eastmain gold mine, Ruby Hill West and Ruby Hill East projects in Quebec.

Tags: Quebec / Exploration / Gold / All Articles