Group Ten Completes $1.2 Million Private Placement Financing
TSX VENTURE: PGE
VANCOUVER, British Columbia, Nov. 23, 2018 (GLOBE NEWSWIRE) -- Group Ten Metals Inc. (TSX.V: PGE; OTC: PGEZF, FSE: 5D32) (the “Company” or “Group Ten”) announces that it has completed a private placement for aggregate proceeds of $1,200,000 through the issuance of eight million units at a price of $0.15 per unit. Each unit consists of one common share of the Company and one half-share purchase warrant. Each full warrant (a “Warrant”) entitles the holder to acquire one common share of the Company at an exercise price of $0.225 per Warrant share for a period of 36 months following the closing date of the private placement. If the closing price of the Company’s common shares on the TSX Venture Exchange is greater than 30 cents per share for a period of 10 consecutive trading days, the company may elect to accelerate the expiry date of part or all of the Warrants, at any date that is four months and one day after the closing date, by giving notice thereof to the holders of the Warrants. In such case, that portion of the Warrants would be subject to an expiry date that is 30 business days after the date on which such notice is given by the Company.
President and CEO Michael Rowley stated: “We are pleased with the level of interest from new shareholders alongside the support from our existing shareholders in completing this private placement. Our newest asset, the Stillwater West Project, continues to receive significant interest based on the potential for discovery of large-scale ‘Platreef-style’ PGM-Ni-Cu systems, based on parallels with the Bushveld Complex in South Africa. The team has been working hard on both the exploration and corporate fronts, and we look forward to reporting results in the coming weeks and months.”
Greg Johnson, Chairman of both Group Ten and the Metallic Group said: “We are pleased to complete the Group Ten financing, which was undertaken concurrently with independent private placements at the two other companies that make up the Metallic Group, being Metallic Minerals and Granite Creek Copper. In aggregate, the Metallic Group companies anticipate raising in excess of $3 million in new financing despite what continues to be challenging market conditions."
Mr. Johnson continued: "The Metallic Group founders and team members include a number of highly successful explorationists formerly with some of the industry's leading explorers/developers and major producers. Over the past two years the team has been building a platform of exploration companies focused on consolidating large brownfields assets adjacent to some of the industry's highest-grade producers of platinum group metals, silver and copper. We believe this strategy creates the opportunity for discovery of large, high-quality deposits in these historic and politically stable mining districts through the application of new models and technology by our experienced exploration teams.”
"By acquiring these low political risk, high potential properties in the low part of the metal price cycle, we are creating value for shareholders that would not likely be available during other parts of the cycle. With the acquisition of these key, district-scale assets complete, our experienced teams are undertaking a systematic approach to exploration to facilitate new discoveries in these proven brownfields districts, where existing road, power and other infrastructure may allow for greatly reduced capital costs and faster timelines for development when compared to remote greenfields deposits.”
"Based on the geologic target models for each of the Metallic Group companies', along with the current depressed stage of the metal price cycle, we believe that each of the three companies in the group has the potential for significant growth over the next several years, through the potential discovery and advancement of new resources in the Stillwater PGM-Ni-Cu district, Keno Hill silver district, and Carmacks Copper district. We look forward to reporting results of our 2018 work programs in the coming weeks and months."
The proceeds of the financing will be primarily used on the Company's Stillwater West project and for general working capital purposes. All securities issued pursuant to the placement are subject to a statutory four month and one day hold period from the date of issuance.
The Company also reports that it has granted 450,000 incentive stock options to certain officers and consultants.
About Group Ten Metals Inc.
Group Ten Metals Inc. is a TSX-V-listed Canadian mineral exploration company focused on the development of high-quality platinum, palladium, nickel, copper, cobalt and gold exploration assets in top North American mining jurisdictions. The Company’s core asset is the Stillwater West PGE-Ni-Cu project adjacent to Sibanye-Stillwater’s high-grade PGE mines in Montana, USA. Group Ten also holds the high-grade Black Lake-Drayton Gold project in the Rainy River district of northwest Ontario and the Kluane PGE-Ni-Cu project on trend with Nickel Creek Platinum‘s Wellgreen deposit in Canada‘s Yukon Territory.
About Metallic Group of Companies
The Metallic Group is a collaboration of leading precious and base metals exploration companies, with a portfolio of large, brownfields assets in established mining districts adjacent to some of the industry’s highest-grade producers of silver, platinum group metals and copper. Member companies include Metallic Minerals (TSX-V: MMG) in the Yukon’s Keno Hill silver district, Group Ten Metals (TSX-V: PGE) in the Stillwater PGM-Ni-Cu district of Montana, and Granite Creek Copper (TSX-V: GCX.H) in the Yukon’s Carmacks copper district. Highly experienced management and technical teams at the Metallic Group have expertise across the spectrum of resource exploration and project development from initial discoveries to advanced development, including strong project finance and capital markets experience and have demonstrated a commitment to community engagement and environmental best practices. The founders and team members of the Metallic Group include highly successful explorationists formerly with some of the industry’s leading explorer/developers and major producers and are undertaking a systematic approach to exploration using new models and technologies to facilitate discoveries in these proven historic mining districts.
The Metallic Group is headquartered in Vancouver, BC, Canada and its member companies are listed on the Toronto Venture, US OTC, and Frankfurt stock exchanges.
|FOR FURTHER INFORMATION, PLEASE CONTACT:|
|Michael Rowley, President, CEO & Director|
|Web: http://grouptenmetals.com||Toll Free: (888) 432 0075|
Forward Looking Statements: This news release includes certain statements that may be deemed "forward-looking statements". All statements in this release, other than statements of historical facts including, without limitation, statements regarding potential mineralization, historic production, estimation of mineral resources, the realization of mineral resource estimates, interpretation of prior exploration and potential exploration results, the timing and success of exploration activities generally, the timing and results of future resource estimates, permitting time lines, metal prices and currency exchange rates, availability of capital, government regulation of exploration operations, environmental risks, reclamation, title, and future plans and objectives of the company are forward-looking statements that involve various risks and uncertainties. Although Group Ten believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Forward-looking statements are based on a number of material factors and assumptions. Factors that could cause actual results to differ materially from those in forward-looking statements include failure to obtain necessary approvals, unsuccessful exploration results, changes in project parameters as plans continue to be refined, results of future resource estimates, future metal prices, availability of capital and financing on acceptable terms, general economic, market or business conditions, risks associated with regulatory changes, defects in title, availability of personnel, materials and equipment on a timely basis, accidents or equipment breakdowns, uninsured risks, delays in receiving government approvals, unanticipated environmental impacts on operations and costs to remedy same, and other exploration or other risks detailed herein and from time to time in the filings made by the companies with securities regulators. Readers are cautioned that mineral resources that are not mineral reserves do not have demonstrated economic viability. Mineral exploration and development of mines is an inherently risky business. Accordingly, the actual events may differ materially from those projected in the forward-looking statements. For more information on Group Ten and the risks and challenges of their businesses, investors should review their annual filings that are available at www.sedar.com.
Neither the 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.