Timberline arranges $500,000 (U.S.) private placement

Oct 9, 2019

2019-10-09 08:57 ET – News Release

Mr. Steven Osterberg reports

TIMBERLINE RESOURCES ANNOUNCES PRIVATE PLACEMENT OFFERING AND EXTENSION OF LOAN AGREEMENT

Timberline Resources Corp. has initiated a non-brokered $500,000 (U.S.) private placement offering of units of the company at a price of eight U.S. cents per unit, with an option to increase the offering by up to 20 per cent, solely to persons who qualify as accredited investors under Rule 506(b) of Regulation D promulgated by the Securities and Exchange Commission under the Securities Act of 1933, as amended.

Each unit consists of one share of common stock of the company and one-half common share purchase warrant, with each warrant exercisable to acquire an additional share of common stock of the company at a price of 12 U.S. cents per share until the warrant expiration date of Oct. 15, 2024.

The company intends to use the net proceeds of the offering for working capital and costs associated with exploration drilling expenses.

Subject to review by the TSX Venture Exchange, cash finders’ fees may be payable with respect to subscriptions accepted by the company. It is anticipated that certain insiders may participate in the offering.

Extension of loan agreement

On July 30, 2018, William Matlack and the company entered into an agreement whereby the company issued a senior unsecured note to the lender in exchange for a loan of $300,000 (U.S.). The note accrues interest at the rate of 18 per cent per annum, compounded monthly, with a maturity date of Jan. 20, 2020.

The lender and the company have agreed to extend the maturity date of the note from Jan. 20, 2020, to Jan. 20, 2023. In connection with the initial advance of the principal sum, the company issued the lender 3,265,500 non-transferrable bonus warrants to purchase common shares of the company at an exercise price of nine cents and expiring Jan. 20, 2020. Further to the note extension, the company and the lender have determined to cancel the 2018 warrants, and the company shall issue to lender four million common share purchase warrants of the company. The new bonus warrants shall be to purchase common shares of the company at 7.5 U.S. cents and expire on Jan. 20, 2023.

The offering, note extension and issuance of new bonus warrants remain subject to a number of customary closing conditions, including TSX-V acceptance.

About Timberline Resources Corp.

Timberline Resources is focused on advancing district-scale gold exploration and development projects in Nevada.

We seek Safe Harbor.

http://timberlineresources.co/