Crystal Lake closes third tranche of financings

Apr 2, 2019

2019-04-02 02:32 ET – News Release

Mr. Richard Savage reports

CRYSTAL LAKE CLOSES FINAL TRANCHE OF FINANCINGS FOR TOTAL PROCEEDS OF $4.6 MILLION

Crystal Lake Mining Corp. has closed the third and final tranche of its recently announced hard-dollar and flow-through non-brokered financings, raising total gross proceeds of $4,596,187.

Unit Private Placement – Third Tranche

Crystal Lake has issued an additional 525,000 units at 22.5 cents per unit in this third tranche with each unit consisting of one common share in the capital of the Company and one share purchase warrant for gross proceeds of $118,125. Each warrant entitles 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 total non-brokered hard dollar private placement gross proceeds from the three tranches amounted to $4,096,187 (18,205,276 units issued).

Acceleration Clause

The warrants issued in the Unit Private Placement are subject to an acceleration provision that states in the event the closing price of the Company’s shares on the TSX Venture Exchange (TSXV), or such other exchange on which the Company’s shares may become traded, is $0.75 (CDN) or greater per share during any fifteen (15) consecutive trading day period at any time subsequent to four months and one day after the closing date, the warrants will expire at 4:00 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.

Flow-through Private Placement

As part of this third tranche, and separate from the previously completed flow-through private placement in the second tranche (1,250,000 flow-through shares at 32 cents per share with no warrant for gross proceeds of $400,000), Crystal Lake has issued 288,500 flow-through units at 35 cents per share for gross proceeds of $100,975. Each unit includes a full warrant exercisable at 45 cents per share for a period of 24 months from closing.

Total flow-through private placement gross proceeds from the second and third tranches are $500,975 (1,538,500 flow-through shares/units).

Finder’s Fees

In connection with the three tranches, the company paid $51,620 in cash finders’ fees and issued 151,200 broker warrants. A total of 100,000 broker warrants entitle the holder to acquire one additional share at an exercise price of 32 cents for a period of 24 months from closing. The balance of the broker warrants (51,200) entitle the holder to acquire one additional share at an exercise price of 45 cents, also for a period of two years from closing.

Use of Proceeds

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 (RG: TSXV), starting this quarter. Flow- through funds raised in this third tranche ($100,975) are for flow-through eligible exploration expenses at Newmont Lake and the Company’s Nicobat Project in northwest Ontario.

All securities in the Unit Private Placement and the FT Private Placements are subject to a four-month hold period from closing, and the three tranches are subject to the approval of the TSX Venture Exchange.

Stock Options Granted

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 1,120,000 shares at an exercise price of 30 cents per share for up to two years.

About Crystal Lake Mining

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.

https://www.crystallakeminingcorp.com/