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Hemlo Explorers closes $3,500,000 private placement for work in prolific Hemlo area

Aug 28, 2020

Hemlo Explorers is going after new and exciting drill targets. The company has closed a non-brokered private placement announced on August 5, 2020, which was subsequently upsized to $3,500,000 later the same day.

Brian Howlett, President and CEO commented, “Management is pleased with the robust response to the Offering including the participation of its major shareholders, Northfield Capital and O3 Mining, which is part of the Osisko Group of Companies.  The company plans to use the funds to further exploration of its properties, particularly the North Limb where recent prospecting and analysis of soil and lithogeochem surveys have given the Company new and exciting drill targets.” 

Pursuant to the Offering, the Company issued 5,000,000 units (“Units”) comprised of one common share and one-half of one common share purchase warrant (each whole warrant, a “Warrant”) for aggregate gross proceeds of $3,500,000.

The gross proceeds of the Offering will be used for the exploration and advancement of the Company’s Hemlo area properties, and for general corporate purposes. Each of the securities issued under the Offering are subject to a hold period under Canadian law which will expire four months and one day from the closing date of the Offering, being December 26, 2020.

Insiders of the Company acquired an aggregate of 1,009,406 Units in the Offering, which participation constituted a "related party transaction" as defined under Multilateral Instrument 61-101 Protection of Minority Security Holders in Special Transactions (“MI 61-101”). Such participation is exempt from the formal valuation and minority shareholder approval requirements of MI 61-101 as neither the fair market value of the securities acquired by the insiders, nor the consideration for the securities paid by such insiders, exceed 25% of the Company's market capitalization.

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