Tocvan Ventures closes $600,000 private placement
2023-04-05 18:13 ET – News Release
Mr. Brodie Sutherland reports
TOCVAN CLOSES $600,000 PRIVATE PLACEMENT WITH INSTITUTIONAL INVESTOR
Tocvan Ventures Corp. has closed its previously announced private placement with an institutional investor to raise an aggregate amount of $600,000. The proceeds from the placement will be deposited with a third party escrow agent and delivered to the corporation in monthly tranches of $50,000 over the next 12 months pursuant to the terms and conditions of a sharing agreement between the company and Sorbie Bornholm LP dated June 28, 2022, as amended on April 5, 2023, and an escrow agreement dated June 28, 2022, as amended on April 5, 2023, between the corporation, Sorbie Bornholm LP and Orrick, Herrington & Sutcliffe (U.K.) LLP. The funds will go toward the advancement of the Pilar and El Picacho Au-Ag (gold-silver) projects in Sonora, Mexico and for general working capital purposes.
Each unit consisted of one common share of the company at a price of 54.4 cents and one-half of one share purchase warrant, with each unit warrant entitling the holder to purchase one additional common share at a price of 68 cents per unit warrant share, for a period of 36 months from the date of issue, subject to acceleration. The investor will receive a corporate finance fee of $36,000, payable via the issuance of 66,177 common shares and 33,088 warrants on the terms noted herein.
The company has the right to accelerate the expiry date if, at any time, the average closing price of the common shares on the Canadian Securities Exchange is equal to or greater than $1.00 for 10 consecutive trading days. In the event of acceleration, the expiry date will be accelerated to a date that is 30 days after the company issues the acceleration notice through a news release, provided that the acceleration notice is issued within 10 business days after the end of the particular 10-day period.
The company relied on the listed issuer financing exemption under Part 5A of National Instrument 45-106 — Prospectus Exemptions for the placement, and the unit shares, unit warrants and unit warrant shares are not subject to restrictions on resale. The offering document dated March 29, 2023, related to the placement is available under the company’s profile at SEDAR and at the company’s website.
“We are pleased to be receiving continued support from Sorbie who share our long-term vision of discovery and development in Mexico,” stated Brodie Sutherland, chief executive officer. “Funds will be utilized to accelerate the advancement of both of our gold-silver projects in Sonora and to aid in the evaluation of future acquisitions. With results from our bulk sample ongoing and future drill programs planned, the coming year will be one of our most exciting yet.”
About Tocvan Ventures Corp.
Tocvan is a well-structured exploration development company. Tocvan was created in order to take advantage of the prolonged downturn the junior mining exploration sector, by identifying and negotiating interest in opportunities where management feels it can build upon previous success. Tocvan has approximately 38 million shares outstanding and is earning 100 per cent into two exciting opportunities in Sonora, Mexico: the Pilar gold-silver project and the El Picacho gold-silver project. Management feels both projects represent tremendous opportunity to create shareholder value.
We seek Safe Harbor.
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