/NOT FOR DISTRIBUTION TO U.S. NEWS WIRE
SERVICES OR DISSEMINATION IN THE UNITED
STATES/
TORONTO, June 5, 2023
/CNW/ - Orford Mining Corp. ("Orford" or the "Company") (TSXV:
ORM) is pleased to announce that it has closed $1.92 million, the first tranche of its
previously announced $6.2 million
non-brokered private placement. The first tranche closing included
(i) 1,108,065 "Critical Minerals flow-through" units ("CMFT
Units") at an issue price of C$0.248 per unit, (ii) 6,032,058 "Flow-through"
units ("FT Units") at an issue price of C$0.215 per unit, and (iii) 2,673,637 million
"Hard Dollar" units ("HD Units") at $0.1305 per unit (the "Offering"), for
gross proceeds of $1,920,602.44 from
the sale of CMFT Units, FT Units, and HD Units. Each CMFT Unit, FT
Unit and HD Unit consists of one common share and one-half of a
common share purchase warrant. Each whole common share purchase
warrant will entitle the holder to purchase one common share of the
Company for a period of two years at an exercise price of
$0.22. Alamos Gold (AGI-TSX) has
participated in the financing to maintain its pro rata holding of
approximately 26.18% of Orford's
outstanding common shares.
Orford intends to use the net
proceeds from the Offering to explore its exploration properties,
in particular its Qiqavik Gold project summer 2023 RAB Drilling
program and its summer 2023 Nunavik Lithium inaugural exploration
program in addition to its Joutel Eagle project, all in northern
Quebec, and for general corporate
purposes. The South Gold Zone on the Joutel Eagle property in the
Abitibi Greenstone Belt of Northern
Quebec is intended to be the focus of a 2024 winter
geophysics and drilling program. The Qiqavik project represents
what Orford believes is a new gold
district discovery in the Cape Smith Belt of Northern Quebec. The Joutel Omega properties
are in the Joutel area of the Abitibi Greenstone Belt of
Northern Quebec.
The remainder of the $6.2 million
Offering as announced on May 12, 2023
is anticipated to close in one or more tranches on or before
June 20, 2023, and is subject to the
prior approval of the TSX Venture Exchange. The securities issued
under the Offering will be subject to a hold period expiring four
months plus a day from the date of closing of the applicable
tranche.
Finders received compensation in respect of a portion of the
financing consisting of an aggregate of $46,710 in cash and 321,794 non-transferable
finder's warrants. Each finder's warrant entitles the holder to
purchase one common share of the Company for a period of two years
at an exercise price of C$0.22.
The securities issued under the Offering will be subject to a
hold period expiring four months plus a day from the date of
closing.
The purchase of securities pursuant to the Offering by Alamos
(an insider of Orford) will
constitute a "related party transaction" as such term is defined by
Multilateral Instrument 61-101 - Protection of Minority Security
Holders in Special Transactions ("MI 61-101"). The transaction will
be exempt from the MI 61-101 valuation and minority approval
requirements for related party transactions in connection with the
Offering under sections 5.5(a) and 5.7(1)(a) of MI 61-101 as
neither the fair market value (as determined under MI 61-101) of
the subject matter of, nor the fair market value of the
consideration for, the transaction, insofar as it involves the
Related Parties, exceeds 25% of the Company's market capitalization
(as determined under MI 61-101).
About Orford Mining Corporation
Orford Mining is a
gold and critical mineral explorer focused on highly prospective
and underexplored areas of Northern
Quebec. Orford's principal
assets are the Qiqavik, West Raglan and lithium exploration
projects comprising a land package totaling over 111,000 hectares
in the Cape Smith Belt of Northern
Quebec. The Qiqavik Project hosts several new high-grade
gold discoveries along a mineralized trend in excess of 40 km. The
West Raglan Project hosts a number of high-grade Raglan-style
nickel/copper/platinum group metal discoveries along a 55 km
mineralized trend. In early 2023 Orford acquired large claim blocks
targeting lithium in the Nunavik Region. These lithium claim blocks
have been carefully selected as having promising lithium potential
after an exhaustive compilation of available data. Orford also has four property positions in the
Joutel region of the Abitibi District of Northern Quebec, which hosts historical
deposits such as the Eagle/Telbel, Joutel Copper, Poirier Copper, and Vezza deposits. Orford continually seeks new gold exploration
opportunities in North America.
Orford's common shares trade on
the TSX Venture Exchange under the symbol ORM. This information
from neighbouring properties is not necessarily indicative of the
mineralization on Orford Mining's properties.
Cautionary Statement Concerning Forward-Looking
Statements
Neither the TSXV nor its Regulation Services Provider
(as that term is defined in the policies of the TSXV) accepts
responsibility for the adequacy or accuracy of this
release.
This news release contains "forward-looking information"
including without limitation statements relating to the exploration
potential of its mineral properties.
Forward-looking statements
involve known and unknown risks, uncertainties and other factors
which may cause the actual results, performance or achievements of
Orford to be materially different
from any future results, performance or achievements expressed or
implied by the forward-looking statements. Factors that could
affect the outcome include, among others: future prices and the
supply of metals; the results of drilling; inability to raise the
money necessary to incur the expenditures required to retain and
advance the properties; environmental liabilities (known and
unknown); general business, economic, competitive, political and
social uncertainties; accidents, labour disputes and other risks of
the mining industry; political instability, terrorism, insurrection
or war; or delays in obtaining governmental approvals, failure to
obtain regulatory or shareholder approvals. For a more detailed
discussion of such risks and other factors that could cause actual
results to differ materially from those expressed or implied by
such forward-looking statements, refer to Orford's filings with Canadian securities
regulators available on SEDAR at www.sedar.com.
Although Orford has
attempted to identify important factors that could cause actual
actions, events or results to differ materially from those
described in forward-looking statements, there may be other factors
that cause actions, events or results to differ from those
anticipated, estimated or intended. Forward- looking statements
contained herein are made as of the date of this news release and
Orford disclaims any obligation to
update any forward-looking statements, whether as a result of new
information, future events or results or otherwise, except as
required by applicable securities laws.
The TSXV has neither approved nor disapproved the contents of this news release.
SOURCE Orford Mining Corporation