Signature Resources receives exploration permit and upsizes equity financing
Signature Resources Ltd. has received its exploration permit, number PR-21-000218, for the Lingman Lake project. The permit covers 197 claims surrounding the patented claims. The permit is in effect for three years, allowing the company to complete its 2024 planned drilling campaign as well as expanded drilling operations in the coming years once the Company has reviewed the results of the 2024 programs.
The team is currently completing its 2024 field program that was focused on: 1) mapping historical activity at the site, 2) structural mapping and 3) locating proposed drill locations and reviewing any structural outcroppings that might better locate and design the proposed drill holes. This program is progressing very well and once completed in early June, the team will review its findings and any impact it might have on the design of the 2024 drill program. The Company is excited to launch this drill program that has been designed to most efficiently use our exploration funds to enrich our understanding and knowledge of the Lingman Lake Project and enable us to reach our goal of publishing a maiden NI 43-101 in the spring of 2025.
Equity Financing Update
On May 2, 2024 the Company announced that it was launching a non-brokered private placement of flow-through shares ("FT Shares") and non-flow-through shares ("NFT Shares") for gross proceeds of up to C$1,000,000 (the "Offering"). Over half of the Offering was expected to be subscribed for by members of the Company's board of directors and management. At the time of the announcement, the Company announced it was offering each FT share at C$0.05 per share and each NFT share was being priced at $0.045. Based on market demand and in consultation with regulators Signature is revising the price of each NFT to $0.05 to reflect the current market conditions. In addition, the previously announced C$1,000,000 offering is being upsized to C$2,100,000 to reflect the strong demand for Signature's shares. Based upon this increased offering size, it is anticipated that management and members of the Company's board will be subscribing to approximately one third of the offering. All securities issued pursuant to this proposed private placement will be subject to final Exchange approval, and all securities issued pursuant to the Offering will have a hold period of four months and one day.
The net proceeds from the Offering will be used for the 2024 drilling program and general working capital purposes. It is expected that ten percent of the proceeds will be used for general working capital purposes with the remainder spent on the drilling program. The Company will use the gross proceeds received by the Company from the sale of the FT Shares, pursuant to the provisions in the Income Tax Act (Canada), 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 or before December 31, 2025, and to renounce all the Qualifying Expenditures in favour of the subscribers of the FT Shares and effective December 31, 2024. None of the proceeds will be used for payments to non-arm's length parties or for investor relations service providers.
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