Crystal Lake amends financings, to reprice options

Mar 19, 2019

2019-03-18 20:54 ET – News Release

Mr. Richard Savage reports

CRYSTAL LAKE INCREASES FINANCINGS TO $4 MILLION

Crystal Lake Mining Corp. has provided an update on the following corporate developments.

Hard-dollar private placement increased to $3.5-million

Due to investor demand, Crystal Lake has increased its recently announced non-brokered hard-dollar private placement financing from $3.0-million to $3.5-million (please refer to March 15, 2018, news release). Subscription agreements have been received for $3,465,500 (15,402,220 units at 22.5 cents per unit) and the official closing of this private placement is expected in the next several days. Each unit consists of one common share in the capital of the company and one share purchase warrant. Each warrant will entitle the holder to purchase one share of the company for a period of 24 months from the closing of the offering at an exercise price of 35 cents per share.

The unit private placement is subject to an acceleration provision that states that in the event that the closing price of the company’s shares on the TSX Venture Exchange (or such other exchange on which the company’s shares may become traded) is 75 cents or greater per share during any 15-consecutive-trading-day period at any time subsequent to four months and one day after the closing date, the warrants will expire at 4 p.m. Vancouver time on the 30th day after the date on which the company provides notice of such accelerated expiry to the holders of the warrants.

$500,000 flow-through financing

The previously announced non-brokered flow-through (FT) private placement for up to $500,000 at 35 cents per unit (refer to March 15, 2019, news release), which included a full warrant exercisable at 45 cents per share for a period of 24 months from the closing of the FT private placement, has been replaced by a $500,000 flow-through private placement at 32 cents with no warrant. Subscription agreements have been received for $470,000 (1,468,750 flow-through shares) and the full $500,000 is expected to officially close shortly.

Finders’ fees will be paid to qualified parties. All securities will be subject to a four-month hold period from the closing date. The private placements are subject to the approval of the TSX-V. Proceeds from the unit private placement will be for general working capital purposes and to complete the first phase of Crystal Lake’s 2019 drilling and exploration program (at least $3-million) at the Newmont Lake project in the Eskay region, optioned from Romios Gold, starting in Q2. Proceeds of the FT private placement will be used to further advance the company’s projects in northwest British Columbia and Northwest Ontario.

Stock options

The company is filing application to reprice current stock options granted to employees, consultants and directors as follows:

600,000 options granted Dec. 20, 2017, from a 60-cent price to 30 cents;
900,000 options granted Jan. 15, 2018, from a 60-cent price to 30 cents;
Two million options granted Sept. 18, 2018, from a 55-cent price to 30 cents.

The above stock option repricing is subject to TSX-V approval and may require disinterested shareholder approval at the next annual general meeting for insiders who hold stock options.

The company is also pleased to announce that, pursuant to the company’s stock option plan, it has granted incentive stock options to its directors, officers, employees and consultants to purchase an aggregate of 960,000 shares at an exercise price of 30 cents per share for up to two years.

The company is filing an application to extend the date of maturity for 2.1 million warrants, which expire May, 2019, and 2,021,000 warrants, which expire June 3, 2019, to Dec. 1, 2019.

About Crystal Lake Mining Corp.

Crystal Lake Mining is a Canadian-based junior exploration company focused on creating shareholder wealth through high-impact new mineral discoveries in the prolific Eskay region of northwest British Columbia and in Northwest Ontario.

We seek Safe Harbor.

https://www.crystallakeminingcorp.com/