Toronto: TSX-V:
MHI
Frankfurt: MLN / WKN: A1JKJN
OTC Market (US): MHIFF
VANCOUVER, BC, Aug. 16, 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 completed the initial tranche
of CAD 101,000 of its private placement offering of
Flow-Through shares ("FTS") at CAD
0.30 per share for its exploration development under the
Earn-In Agreement referred to as "PP1b" in the News Release of
April 27, 2021. These FTS qualify as
"flow-through mining expenditures" under the Income Tax Act
(Canada).
The Company has also completed the initial tranche of
CAD 100,083 for the private placement
offering of security units referred to as "PP1a" in the News
Release of April 27, 2021 to be used
as general working capital. The PP1a security units are priced at
CAD 0.225 per unit and consist of one
common share and one transferable share purchase warrant (the
"Warrant") with an overall exercise period of two (2) years
subsequent to the to be announced Closing Date of PP1a. Each
Warrant will entitle its holder to purchase one 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
Warrants will not be listed for trading on the TSXV and the common
shares being issued will have a trading restriction of four months
subsequent to the issuance date.
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.
In Accordance to the executed Earn-In Agreement announced on
December 24, 2020 the Company has the
irrevocable option to acquire an initial 20% interest in the
Apex-Claims (the "First Apex Option") conditional upon (i)
incurring or funding $84,728 of
exploration expenditures on the Apex Claims, (ii) receiving TSXV
approval, (iii) paying to the Owner $10,000 cash, and (iv) issuing 100,000 common
shares to the Owner.
After exercising the First Apex Option, the Owner will grant the
Company a second option to acquire a further 80% interest in the
Apex Claims by: (a) paying to the Owner $15,000 cash; (b) issuing 150,000 common shares
to the Owner; and (c) incurring or funding $125,000 of exploration
expenditures on the Apex Claims within two years of the TSXV
approval.
Closing of the Offering is subject to the TSXV approval and all
securities issued under the private placement offering will be
subject to a statutory hold period of four months plus a day
following the date of 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.
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.