Toronto: TSX-V:
MHI
Frankfurt: MLN / WKN:
A1JKJN
OTC Market (US): MHIFF
VANCOUVER, BC, Aug. 26, 2021 /CNW/ - Mineral Hill
Industries Ltd. ("Mineral Hill" or "Company"), listed
on the TSX Venture Exchange ("TSXV") under the trading
Symbol "MHI", and on the Deutsche Boerse, Frankfurt under the trading Symbol "MLN"
wishes to announce the it has closed the initial tranches of
its on August 16, 2021
announced private placement offerings of Flow-Through shares
("FTS") referred to as PP1b and dedicated for exploration and
development expenses of the Dot-Apex Claim Group under its executed
Earn-In Option Agreement (the "EIO-Agr"). The proceeds from
PP1b are CAD 101,010 and Mineral Hill will issue 336,700
Flow-Through shares at a price of CAD
0.30 per share (PP1b") which will qualify as "flow-through
mining expenditures" under the Income Tax Act (Canada), which will be renounced to the
purchasers of such shares in an aggregate amount no less than the
proceeds raised from the issue of the Flow-Through Shares and the
flow-through shares comprising part of the Flow Through
Units.
The Company closed as well the initial tranche of CAD 106,795.50 for the private placement offering
of Non-Flow-Through security units ("NFTS) also announced on
August 16, 2021 as "PP1a") and will
issue 474,648 units at a price of CAD
0.225 per unit. Each unit of PP1a consists of one NTFS
common share and one transferable share purchase warrant (the
"Warrant") with an overall exercise period of two (2) years. Each
Warrant will entitle its holder to purchase one NTFS common share
of the Company at a price of CAD 0.30
per share if exercised within the first year of the Closing Date
and at a price of CAD 0.34 per share
if exercised within the second year following the Closing Date. The
proceeds from the unit offering will be used for general working
capital.
The Company's average closing price on the TSXV since the
resumption of trading on April 15,
2021 including to today's closing is Can$ 0.228 and no
finder fees will be paid resulting from the closing of the first
tranches of PP1b and PP1a.
In accordance to the executed EIO-Agr announced on December 24, 2020, the Company has the
irrevocable option to acquire an initial 20% interest in the
Dot-Apex Claim Group ("Apex-Claims") conditional upon (i)
incurring and raising initially a minimum funding of
CAD 84,728 for exploration
expenditures on the Apex-Claims, (ii) receiving TSXV approval,
(iii) paying to the Owner CAD 10,000
cash, and (iv) issuing 100,000 common shares to the Owner. After
executing the initial part of the Apex Option, the Company the
exclusive option to acquire a further 80% interest in the
Apex-Claims by: (a) paying to the Owner CAD
15,000 cash; (b) issuing 150,000 common shares to the Owner;
and (c) incurring and raising minimum funding of $125,000 for
exploration expenditures on the Apex Claims within two years of the
TSXV approval.
The company will proceed with closing the second tranches for
PP1b and PP1a to acquire 100% of the Apex-Claims under the
above first tranche conditions by raising additional funds up to
CAD 200,000 and CAD 100,000 respectively whereby a finders' fee
may be paid to arms-length finders, subject to the TSXV approval.
All securities issued under the second tranches of the private
placement offerings will be subject to a statutory hold period of
four months plus a day following the date of its closing.
Certain directors and officers of the Company may acquire units
under the private placement. Any such participation would be
considered to be a "related party transaction" as defined under
Multilateral Instrument 61-101 ("MI 61-101"). The transaction will
be exempt from the formal valuation and minority shareholder
approval requirements of MI 61-101 as neither the fair market value
of any units issued to or the consideration paid by such persons
will exceed 25% of the Company's market capitalization. This
private placement is subject to regulatory approval.
Under the EIO-Agr, Mineral Hill has also the exclusive option to
acquire the Master ACE Claim Group (the "ACE-Claims") in two
stages. In case the Company decides not to continue with the
acquisition of the Apex-Claims based on the exploration results
received during its first or second phase respective exploration
work, all excess funds being raised for the acquisition and
exploration of the Apex-Claims will be applied to the Acquisition
of the ACE-Claims.
ABOUT MINERAL HILL INDUSTRIES LTD
Mineral Hill is a publicly traded junior mining company focused
on the acquisition, exploration and development of mineral resource
properties, with a primary objective of developing the Dot-Apex
Claim Group ("Apex Claims") and the Master-ACE Claim Group ("ACE
Claims"), located in south-western British Columbia. The Apex
Claims consist of contiguous claim cells totalling 2,406.13
hectares and the ACE Claims totalling 695.09 hectares.
The Company seeks Safe Harbor
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of
this release.
This news release may contain forward-looking statements
based on assumptions and judgments of management regarding future
events or results. Such statements are subject to a variety of
risks and uncertainties which could cause actual events or results
to differ materially from those reflected in the forward-looking
statements. There is no assurance the private placement, property
option or reinstatement of trading referred to above will close on
the terms as stated, or at all. The Company disclaims any intention
or obligation to revise or update such statements.
The securities which may be offered have not been,
nor will be, registered under the United States Securities Act
of 1933, as amended, and may not be offered or sold in
the United States or to U.S.
persons without registration or applicable exemption from the
registration requirement of such Act. This release does not
constitute an offer for sale of such securities in the United States of America.
SOURCE Mineral Hill Industries Ltd.