|Inventus Mining Announces Private Placement Financing|
TORONTO, Jan. 02, 2020 (GLOBE NEWSWIRE) -- Inventus Mining Corp. (TSX VENTURE: IVS) (“Inventus” or the “Company”) today announces a non-brokered private placement financing comprising the sale of up to 7,142,857 units (“Units”), to be sold at $0.105 per Unit for gross proceeds of $750,000 (the “Offering”). Each Unit will consist of one common share (“Common Share”) and one common share purchase warrant (“Warrant”). Each common share purchase Warrant will entitle the holder to acquire one Common Share for $0.17 for a period of two years after the closing of the Offering. All securities issued in conjunction with the Offering are subject to a hold period of four months and one day after closing.
Proceeds of the Offering will be used to fund exploration on the Sudbury 2.0 Project, to advance bulk sampling at the Pardo Project, and for general corporate purposes.
The Offering of the Units is subject to the receipt of all required corporate and regulatory approvals including the approval of the TSX Venture Exchange (“TSXV”).
Canaccord Genuity Wealth Management (“Canaccord”) will act as placement agent for the Offering. Inventus has agreed to pay Canaccord a 6% cash commission, and 10% broker warrants on the Offering provided it is fully subscribed. Each broker warrant will be exercisable into a Unit at $0.105 per Unit for a period of one year.
Related Party Transaction
In connection with the Offering, Evanachan Limited, a company owned and controlled by Rob McEwen, and Stefan Spears, CEO of the Company, have agreed to acquire 2,380,952 Units and 190,476 Units respectively, for gross proceeds of $270,000. As a result of holding 10% or more of the issued and outstanding common shares of the Company, Rob McEwen is an “insider” of the Company. The acquisition of 2,380,952 Units by Evanachan Limited and 190,476 Units by Mr. Spears in connection with the Offering will be considered a "related party transaction" pursuant to Multilateral Instrument 61-101- Protection of Minority Security Holders in Special Transactions ("MI 61-101") requiring the Company, in the absence of exemptions, to obtain a formal valuation for, and minority shareholder approval of, the “related party transaction”. The Company is relying on an exemption from the formal valuation requirements of MI 61-101 available because no securities of the Company are listed on specified markets, including the TSX, the New York Stock Exchange, the American Stock Exchange, the NASDAQ or any stock exchange outside of Canada and the United States other than the Alternative Investment Market of the London Stock Exchange or the PLUS markets operated by PLUS Markets Group plc. The Company is also relying on the exemption from minority shareholder approval requirements set out in MI 61-101 as the fair market value of the participation in the Offering by Evanachan Limited and Mr. Spears does not exceed 25% of the market capitalization of the Company, as determined in accordance with MI 61-101.
Early Warning Reporting
Upon closing of the Offering, in satisfaction of the requirements of the National Instrument 62-104 - Take-Over Bids And Issuer Bids and National Instrument 62-103 - The Early Warning System and Related Take-Over Bid and Insider Reporting Issues an early warning report respecting the acquisition of Units by Robert McEwen will be filed under the Company’s SEDAR Profile at www.sedar.com.
About Inventus Mining Corp.
Inventus is a mineral exploration and development company focused on the world-class mining district of Sudbury, Ontario. Our principal assets are a 100% interest in the Pardo Paleoplacer Gold Project and the Sudbury 2.0 Project located northeast of Sudbury. Pardo is the first important paleoplacer gold discovery found in North America. Inventus has 110,301,069 common shares outstanding (120,316,369 shares on a fully diluted basis).
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For further information, please contact:
Mr. Stefan Spears
Chairman and CEO
Inventus Mining Corp.
Tel: (647) 258-0395 x280