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TORONTO, Aug. 20, 2020 /CNW/ - Nubian Resources Ltd.
("Nubian" or the "Company") (TSX VENTURE: NBR) is pleased to
announce that the $4.2 million
non-brokered private placement offering of units priced at
$0.42 per unit (the "Offering")
announced by the Company on August 7,
2020 has closed. Eric
Sprott subscribed for the entirety of the Offering.
The Offering comprised an aggregate of 10 million units, each
Unit consisting of one common share of the Company (a "Common
Share") and one-half of one common share purchase warrant of the
Company (each whole common share purchase warrant, a "Warrant").
Each Warrant will be exercisable to purchase a common share
of the Company (a "Warrant Share") at an exercise price of
$0.55 per Warrant Share for a period
of 24 months following the closing of the Offering. The Units
and the underlying securities to be issued under the Offering will
have a hold period of four months and one day from Closing.
The Company intends to use the net proceeds from the Offering
for working capital requirements and other general corporate
purposes.
Eric Sprott, through 2176423
Ontario Ltd., a corporation which is beneficially owned by him,
acquired 10,000,000 Units pursuant to the Offering. After closing
of the Offering, Mr. Sprott now beneficially owns or controls
10,000,000 Common Shares and 5,000,000 representing approximately
18.8% on a non-diluted basis and 25.8% on a partially diluted basis
assuming exercise of all pre-existing warrants. Prior to the
Offering, Mr. Sprott did not own or control any securities of the
Company. Mr. Sprott has provided an undertaking not to exercise his
warrants until such time as the Company can obtain shareholder
approval (from disinterested shareholders) and TSX Venture Exchange
approval of the new control person which will be created once Mr.
Sprott exceeds 20% ownership.
The Units were acquired by Mr. Sprott, through 2176423 Ontario
Ltd. for investment purposes. Mr. Sprott has a long-term view of
the investment and may acquire additional securities of the Company
including on the open market or through private acquisitions or
sell securities of the Company including on the open market or
through private dispositions in the future depending on market
conditions, reformulation of plans and/or other relevant factors. A
copy of 2176423 Ontario Ltd.'s early warning report will appear on
the Company's profile on SEDAR and may also be obtained by calling
416-945-3294 (200 Bay Street, Suite 2600, Royal Bank Plaza, South
Tower, Toronto, Ontario M5J
2J1).
In connection with the Offering, the Company paid a finders'
fees (the "Finder's Fee") in cash equal to 6% of the gross proceeds
from the sale of Units and broker warrants equal to 6% of the Units
pursuant to the Offering. Each broker warrant entitles the
holder thereof to purchase one Common Share at a price of
$0.55 per Common Share.
The issuance of the Units and payment of the Finder's Fee are
subject to certain conditions including, but not limited to, the
receipt of all necessary approvals including the approval of the
TSX Venture Exchange.
About Nubian Resources
Nubian Resources Ltd. is a public traded precious and base
metals exploration company listed on the TSX Venture Exchange. The
Company is managed by a team of experienced mining and geological
professionals. In May 2020, Nubian
entered into an agreement to acquire and develop the Yandoit Gold
Project in central Victoria,
Australia and in July 2020,
Nubian entered into an agreement to acquire Stavely Mineral
Limited's Fosterville East project and its Lefroy and Matthina projects in Tasmania. Nubian's main asset is the
Esquilache Silver Project located within the Tintaya porphyry
copper belt of southern Peru.
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
SOURCE Nubian Resources Ltd.