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VANCOUVER, April 20, 2020 /CNW/ - Tectonic Metals
Inc. (TECT: TSX-V) ("Tectonic" or the "Company") is
pleased to announce that the Company has closed its C$2.1 million strategic financing with Doyon,
Limited ("Doyon") previously announced on April 15, 2020 (the "Financing"). Doyon is
now Tectonic's largest, single shareholder with a 16.1% undiluted
ownership and a 22.3% ownership on a partially diluted basis.
Tectonic and Doyon CEO Live Webinar
Tectonic and Doyon are hosting a live webinar on Tuesday, April 21st at 11:00 am EDT / 8:00 am
PST. The CEOs of both companies will be presenting
and will be available to answer questions following the
presentation. Online registration and participation details
are available by clicking the following link:
https://bit.ly/2xiiJS0
For those unable to participate, a recording of the webinar will
be posted to the Company's website,
www.tectonicmetals.com, following the live broadcast.
The Financing and Pre-Emptive Right to Maintain
Doyon purchased 10,473,000 units of Tectonic for a subscription
price of C$0.20 per unit. Each
unit is comprised of one common share of Tectonic and one-half
common share purchase warrant (each whole warrant, a
"Warrant"). Each Warrant has an exercise price of
C$0.40 and will expire April 17, 2022.
The Warrants are subject to an acceleration clause whereby if
the volume-weighted average trading price of Tectonic's common
shares on the TSX Venture Exchange (the "TSXV") is C$0.56 or greater for a period of ten (10)
consecutive trading days (whether or not trading occurs on all such
days), Tectonic has the right to accelerate the expiry date of the
Warrants to thirty (30) days from the date of issuance of a news
release by Tectonic announcing the accelerated exercise period.
Doyon has agreed not to exercise any Warrants if as a result of
such exercise it causes Doyon to hold more than 19.99% of the total
outstanding common shares of Tectonic, together with all other
common shares beneficially held by Doyon, directly or indirectly,
unless and until the shareholders of Tectonic have passed a
resolution approving such exercise of the Warrants in accordance
with the applicable rules and policies of the TSXV.
Doyon was granted a pre-emptive right to maintain its pro-rata
interest for as long as Doyon owns more than 10.0% of the common
shares of Tectonic (calculated on a partially diluted
basis).
The Company intends to use the proceeds from the Financing for
general working capital.
The securities issued pursuant to the Financing are subject to a
statutory hold period expiring August 18,
2020 in accordance with applicable securities law and the
policies of the TSXV.
About Doyon
With more than 12.5 million acres of land and over 20,000
shareholders, Doyon is the largest private landholder in
Alaska and one of the largest in
North America. Doyon's mission is
to continually enhance their position as a financially secure
Native Corporation and promote the economic and social well-being
of their shareholders and future shareholders. They focus on
strengthening the Native way of life and protecting and enhancing
their land and resources.
About Tectonic
Tectonic Metals Inc. is a mineral exploration company created
and operated by an experienced and well-respected technical and
financial team with a track record of wealth creation for
shareholders. Key members of the Tectonic team were involved
with Kaminak Gold Corporation, the Company that raised C$165 million to fund the acquisition, discovery
and advancement of the Coffee Gold Project in the Yukon Territory through to the completion of a
bankable feasibility study before selling the multi-million-ounce
gold project to Goldcorp Inc. (now Newmont Goldcorp) for
C$520 million in 2016.
Tectonic is focused on the acquisition, exploration, discovery
and development of mineral resources from district-scale projects
in politically stable jurisdictions that have the potential to host
world-class orebodies.
Whether at home or at work, the Tectonic team is grounded on the
following core values: passion, integrity, patience, focus,
perseverance, honesty, fairness, accountability, respect and a play
big mindset. The Company works for its shareholders and is
committed to creating value for them.
This news release does not constitute an offer to sell,
solicitation or offer to buy nor shall there be any sale of any of
the securities in any jurisdiction in which such offer,
solicitation or sale would be unlawful, including any of the
securities in the United States of
America. The securities have not been and will not be
registered under the United States Securities Act of 1933, as
amended (the "1933 Act") or any state
securities laws and may not be offered or sold within the United States or to, or for account or
benefit of, U.S. Persons (as defined in Regulation S under the 1933
Act) unless registered under the 1933 Act and applicable state
securities laws, or an exemption from such registration
requirements is available.
On behalf of Tectonic Metals Inc.
Tony Reda
President
and Chief Executive Officer of Tectonic Metals Inc.
For further information about Tectonic Metals Inc. or this news
release, please visit Tectonic's website at www.tectonicmetals.com
or contact Tony Reda, President
& CEO of Tectonic, at toll-free 1.888.858.9887 or by email at
info@tectonicmetals.com.
Follow Tectonic Metals on LinkedIn, Facebook, Twitter and
Instagram
Cautionary Note Regarding Forward-Looking Statements
Certain information in this news release constitutes
forward-looking information and statements under applicable
securities law. Any statements that are contained in this news
release that are not statements of historical fact may be deemed to
be forward-looking statements. Forward-looking statements are often
identified by terms such as "may", "should", "anticipate",
"expect", "intend" and similar expressions and include, but are not
limited to, statements with respect to the Company's use of
proceeds. Forward-looking information is not a guarantee of future
performance and is based upon estimates and assumptions of
management at the date the statements are made. Many assumptions
are based on factors and events that are not within the
control of Tectonic, and there is no assurance they will prove to
be correct.
Although Tectonic considers these beliefs and assumptions to
be reasonable based on information currently available to it, they
may prove to be incorrect, and the forward-looking statements in
this release are subject to numerous risks, uncertainties and other
factors that may cause future results to differ materially from
those expressed or implied in such forward-looking statements.
Forward-looking statements necessarily involve known and unknown
risks as identified under the heading "Risk Factors" in Tectonic's
Annual Information Form dated April 13,
2020 as filed on SEDAR at www.sedar.com.
Readers are further cautioned not to place undue reliance on
forward-looking statements as there can be no assurance that the
plans, intentions, or expectations upon which they are placed will
occur. Such information, although considered reasonable by
management at the time of preparation, may prove to be incorrect
and actual results may differ materially from those anticipated.
Forward-looking statements contained in this news release are
expressly qualified by this cautionary statement. Although Tectonic
has attempted to identify important factors that could cause actual
results to differ materially from those contained in
forward-looking information, there may be other factors that cause
results not to be as anticipated, estimated or intended. There can
be no assurance that such information will prove to be accurate, as
actual results and future events could differ materially from those
anticipated in such statements. Accordingly, readers should not
place undue reliance on forward-looking information. Tectonic does
not undertake to update any forward-looking information, except in
accordance with applicable securities laws.
Neither the TSX Venture Exchange nor its Regulation
Service 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 Tectonic Metals Inc.
