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Moneta Porcupine closes oversubscribed $22.6 Million Financing

Feb 5, 2021

"The closing of our oversubscribed financing provides Moneta with the ability to quickly advance our existing gold resources, as well as those to be acquired once the combination with O3 Mining's Garrison Project is concluded," Gary O'Connor, CEO of Moneta, commented. 

The combined assets will host a current resource of 4.0M gold ounces indicated and 4.4M gold ounces inferred, creating one of the largest undeveloped gold projects in North America. Our drill program for this year is planned to be 70,000 metres, more than double the size of our program in 2020 with several high-grade and open pit targets already having been identified." 

Moneta Porcupine Mines Inc. has closed its previously announced bought deal private placement for aggregate gross proceeds of C$19.6 million.

The Bought Deal Offering was led by Paradigm Capital Inc. ("Paradigm") and Dundee Goodman Merchant Partners ("Dundee") on behalf of a syndicate of underwriters including Canaccord Genuity Corp., Eight Capital, Haywood Securities Inc., and Sprott Capital Partners LP (together with Paradigm and Dundee, the "Underwriters").

In connection with the Bought Deal Offering, Moneta issued 17,343,700 common shares at C$0.32 per share ("Hard Dollar Shares") and 30,435,000 common shares at C$0.46 issued on a flow-through basis ("Flow Through Shares") for aggregate gross proceeds of $19,550,084, including 7,968,700 Hard Dollar Shares pursuant to the full exercise of the Underwriters' option.

Concurrent with the Bought Deal Offering, Moneta also closed its previously announced non-brokered private placement of subscription receipts at a price of C$0.32 per subscription receipt for gross proceeds of C$3,000,000 ("Subscription Receipts"). The proceeds from the sale of the Subscription Receipts have been deposited into escrow pending satisfaction of certain escrow release conditions, including closing of the previously announced acquisition ("Acquisition") of the Garrison project from O3 Mining (ME-PR 01-2021), as further described below. At the time the Acquisition closes, each Subscription Receipt will be exchanged for one common share of Moneta.

The Company will use an amount equal to the gross proceeds received by the Company from the sale of the Flow Through Shares, pursuant to the provisions in the Income Tax Act (Canada), to incur or be deemed to incur eligible "Canadian exploration expenses" that qualify as "flow-through mining expenditures" as both terms are defined in the Income Tax Act (Canada) (the "Qualifying Expenditures") on future and current properties of the Company or a subsidiary thereof on or before December 31, 2022, and to renounce all the Qualifying Expenditures in favour of the subscribers of the Flow Through Shares effective on or before December 31, 2021. The proceeds from the sale of the Hard Dollar Shares and Subscription Receipts will be used for exploration and development activities on future and current properties of the Company or a subsidiary thereof and for general corporate purposes.

The offerings were completed in connection with the Company's previously announced Acquisition, whereby Moneta will acquire all of the outstanding common shares of Northern Gold Mining Inc., a wholly owned subsidiary of O3 Mining which owns 100% of the Golden Bear assets, including the Garrison Gold Project, located immediately adjacent to Moneta's Golden Highway Project in Timmins, Ontario. Please refer to the Company's press release dated January 14, 2021 (ME-PR 01-2020) for further information regarding the Acquisition.

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