Metallic arranges $4 million financing

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Metallic Minerals Corp. (MMG-TSXV, MMNGF-USOTC) has arranged a non-brokered private placement offering that is expected to raise $4.03 million. Proceeds will be used to incur Canadian Exploration Expenses under the Canadian Income Tax Act at Metallic’s flagship Keno Silver Project, which is located in the Canadian Yukon.

The project covers 166 square kilometres and is located in the historic Keno Hill Silver District, where Metallic has consolidated the second largest land position directly adjacent to Alexco Resources Corp.’s (AXR-TSX, AXU-NYSE) operations.

Metallic said the offering consists of 9.6 million flow-through units priced at 42 cents each, and represents a premium to the May 17, 2022 closing price of the company’s shares on the TSX Venture Exchange.

The units consist of a flow-through share and one-half warrant, and are being issued as part of a charity arrangement structured by Peartree Securities Inc.

Each whole share purchase warrant is exercisable into one additional common share of the company at 50 cents per share for a period of 30 months from the date of closing, which is expected to be on June 8, 2022.

Subject to approval by the Exchange, if the closing price five trading days prior to the end of the 30-month warrant period is at or below 50 cents, the company will, upon written request by a warrant holder, extend the expiry of the warrants for an additional six months.

On May 18, 2022, Metallic shares closed at 31 cents and currently trade in a 52-week range of 66 cents and 31 cents.

“We are very pleased to add these new investors to our supportive shareholder base and are in a position to complete the important follow-up programs at the company’s Keno Silver and the La Plata projects (in Colorado), using a combination of existing funding and new flow-through funds,” said Metallic Chairman and CEO Greg Johnson.

Metallic has said it is planning a robust campaign of follow-up drilling and geophysical surveys for the La Plata project this year. The objective is to expand the 2022 resource and advance new targets.

The move comes after Metallic recently announced a NI 43-101-compliant resource estimate for the road accessible La Plata project, which covers 33 square kilometres, approximately 26 kilometres northwest of Durango, Colorado.

The project’s Allard copper-silver- porphyry deposit is estimated to host an inferred mineral resource of 889 million pounds of copper and 14.9 million ounces of silver in a constrained model with 115.7 million tonnes at an average grade of 0.39% copper equivalent (CuEq) (0.35% copper and 4.02 g/t silver) based on a 0.25% CuEq cut-off.

The resource estimate was completed by SGS Geological Services and is based on 56 diamond core drill holes, covering 15,200 metres completed by Rio Tinto Plc [RIO-NYSE], Freeport-McMoran Inc. [FCX-NYSE] and others, along with new drilling and underground sampling by Metallic Minerals.


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