York Harbour arranges $6.6-million private placement

May 30, 2022

2022-05-30 11:51 ET – News Release

Mr. Andrew Lee reports

YORK HARBOUR METALS ANNOUNCES $6.6 MILLION PRIVATE PLACEMENT OF UNITS AND FLOW-THROUGH UNITS

York Harbour Metals Inc. has entered into an agreement with Research Capital Corp. and Red Cloud Securities Inc. as joint bookrunners, together with Haywood Securities Inc. as co-lead agents, on behalf of a syndicate of agents, in connection with a best efforts, private placement offering for an aggregate gross proceeds of up to $6.6-million in a combination of:

units of the company at a price of $1 per unit. Each unit will consist of one common share in the capital of the company and one-half of one common share purchase warrant.
flow-through units of the company at a price of $1.20 per FT unit. Each FT unit will consist of one common share that will qualify as flow-through shares within the meaning of subsection 66(15) of the Income Tax Act (Canada) and one-half of one warrant.
flow-through units of the company to be sold to charitable purchasers at a price of $1.50 per charity FT unit. Each charity FT unit will consist of one common share that will qualify as flow-through shares within the meaning of subsection 66(15) of the Tax Act that will be issued as part of a charity arrangement and one-half of one warrant.

Each warrant shall entitle the holder thereof to purchase one common share at an exercise price of $1.50 per warrant share at any time up to 24 months following the closing (as defined herein).

The agents will have an option to offer for sale up to an additional 15 per cent of the number of units, FT units and charity FT units sold in the offering, which agents’ option is exercisable, in whole or in part, at any time up to 48 hours prior to the closing of the offering.

It is expected that the proceeds from the sale of units will be used for exploration and development of the company’s York Harbour project located in Newfoundland and for general working capital purposes. The gross proceeds from the sale of the FT units and charity FT units will be used to incur Canadian Exploration Expenses (CEE) and will qualify as flow-through mining expenditures under the Tax Act.

The company will renounce such CEE to the purchasers of the FT units and charity FT units with an effective date of no later than Dec. 31, 2022.

In connection with the offering, the agents will receive an aggregate cash fee equal to 6 per cent of the gross proceeds from the offering, including in respect of any exercise of the agents’ option, subject to a reduction for certain purchasers on a “president’s list”. In addition, the company will grant the agents, on date of closing, non-transferable compensation warrants equal to 6 per cent of the total number of units, FT units and charity FT units sold under the offering, including in respect of any exercise of the agents’ option, subject to a reduction for certain purchasers on a “president’s list”. Each compensation warrant will entitle the holder thereof to purchase one unit at an exercise price of $1 per unit for a period of 24 months following the closing.

The offering is scheduled to close on or about the week of June 20, 2022, or such other date as agreed upon between the company and the agents. Completion of the offering is subject to final approval of the TSX Venture Exchange. All securities issued pursuant to the offering will be subject to a statutory hold period expiring four months and a day from the date of distribution.

The units, FT units and charity FT units to be issued under the offering will be offered by way of private placement in each of the provinces of Canada. The units will also be offered to such other jurisdictions as may be determined by the company and the agents, in each case, pursuant to applicable exemptions from the prospectus requirements under applicable securities laws.

About York Harbour Metals Inc.

York Harbour Metals is an exploration and development company focused on the 100-per-cent-owned York Harbour copper-zinc-silver project, a mineral property located approximately 27 kilometres from Corner Brook, Nfld. The company plans to continue drilling the strike and depth extents of Main mine area and test the other massive sulphide targets, like the No. 4 Brook showing, while focusing on gaining access to the 400-level and sea level adits.

We seek Safe Harbor.

https://yorkharbourmetals.com/