Toronto, Ontario–(Newsfile Corp. – September 22, 2022)- Benz Mining Corp. (TSXV:BZ) (ASX:BNZ) (the “company” or “Benz“) is pleased to announce that it has successfully completed a private placement (the “private placement“) from 16,434,000 Common shares in the capital of the Company, consisting of (i) 7,929,317 Flow-Through Charity Common Shares and 3,945,813 Flow-Through Common Shares (collectively, the “FT shares“) and (ii) 4,558,870 non-flow-through common shares (the “HD releases“) at a price of $0.42 per HD share for total gross proceeds of approximately $11.9 million.
The gross proceeds received by the Company from the sale of the FT Shares will be used to incur eligible “Canadian Exploration Expenditure” within the meaning of Income Tax Act (Canada) (the “tax law“), of which: (i) 7,929,317 FT Shares (the “CMETC FT shares“), issued at a price of C$0.883 per CMETC FT share, will be used to meet Canadian exploration expenditures required for the shares issued on 7 (the “METC FT shares“) issued at a price of C$0.760 per METC FT share will be used to incur eligible Canadian exploration expenditures that qualify as “flow-through mining expenditures” for tax purposes. The Company is waiving Effective December 31, 2022 on drafter’s expenses.
In connection with the closing of the private placement, the Company paid a commission of A$465,413.20 and agreed to issue 1,400,000 brokerage warrants, each exercisable to acquire one common share if the Company trades at a price of $0 AUD .63 is exercisable for a period of three years (the “Broker Warrants“). The Broker Warrants will not be issued until the Company has obtained shareholder approval for the issuance.
Proceeds from the sale of the FT shares will be used to fund exploration at the Company’s Ruby Hill West, Ruby Hill East and Eastmain projects in Quebec. Proceeds from the sale of HD shares are used for general working capital and issuing expenses.
The private placement is subject to final TSX Venture Exchange approval. The securities issued in connection with the private placement are subject to a four month and one day statutory hold period in Canada.
About Benz Mining Corp.
Benz Mining Corp. (TSXV: BZ) (ASX: BNZ) brings together an experienced team of geoscientists and financial professionals with a focused strategy to develop the immense gold prospective mineral potential of northern Quebec’s Upper Eastmain Greenstone Belt. Lithium, nickel, copper and other high-value minerals critical to global decarbonization challenges. Benz earns a 100% interest in the past-producing Eastmain high-grade gold mine, Ruby Hill West and Ruby Hill East projects in Quebec and owns 100% of the Windy Mountain project.
At the Eastmain Gold Project, Benz has identified a combination of over 380 modeled downhole and outhole DHEM conductors over a 6km strike length that is open in all directions (final interpretation of some of the conductors is pending).
In 2021, Benz confirmed the presence of visible spodumene in a pegmatite at the Ruby Hill West project, indicating lithium mineralization that Benz plans to explore further in 2022.
On behalf of the Board of Directors of Benz Mining Corp.
Xavier Braud, CEO
For more information, please contact:
Benz Mining Corp.
Telephone +61 8 6143 6702
Certain statements in this press release may constitute “forward-looking information” as that term is used in applicable Canadian securities laws. Forward-looking information is based on management’s plans, expectations and estimates at the time the information is made and is subject to certain factors and assumptions, including that the company’s financial condition and development plans will not change as a result of unforeseen events and that the company will receive regulatory approval. Forward-looking information is subject to a variety of risks and uncertainties and other factors that could cause plans, estimates and actual results to differ materially from those projected in such forward-looking information. Factors that could cause the forward-looking information in this press release to change or be inaccurate include, among others, the risk that any of the foregoing assumptions prove invalid or reliable, that events such as those discussed above occur materialize and result in delays or cancellation of planned work, changes in the Company’s financial condition and development plans, and delays in regulatory approvals and other risks and uncertainties applicable to the Company, as described in the Company’s continued disclosure documents, which under the Company’s profile on www.sedar.com. The company assumes no obligation to update these forward-looking statements, except as required by applicable law.
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