Le Lézard
Classified in: Mining industry, Business
Subjects: FINANCING AGREEMENTS, TRADE ISSUES

Fredonia Mining Inc. Announces $3 Million "Best Efforts" Private Placement Financing


NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN OR INTO THE UNITED STATES OF AMERICA OR TO ANY PERSON LOCATED OR RESIDENT IN THE UNITED STATES OF AMERICA, ITS TERRITORIES AND POSSESSIONS, ANY STATE OF THE UNITED STATES OR THE DISTRICT OF COLUMBIA.

TORONTO, April 06, 2022 (GLOBE NEWSWIRE) -- Fredonia Mining Inc. (TSXV: FRED) (the "Company" or "Fredonia"), is pleased to announce that it has entered into an agreement with Paradigm Capital Inc. (the "Agent") in connection with a proposed best efforts private placement financing (the "Offering") for total proceeds of approximately $3 million, consisting of a minimum of 17,000,000 units of the Company (the "Units") at a price of $0.18 per Unit. Each Unit will comprise one common share (a "Common Share") and one common share purchase warrant (a "Warrant"). Each Warrant will be exercisable for five years from the Closing Date at an exercise price of $0.28 per Common Share.

In addition, the Company will grant the Agent an option (the "Agent's Option") to sell up to that number of additional Units equal to 15% of the base Offering size, exercisable up to 48 hours prior to the closing of the Offering.

The net proceeds from the Offering shall be used to fund ongoing exploration, updating technical studies, and for general corporate purposes.

The Offering is expected to close on or about April 27, 2022 (the "Closing Date") and will be subject to regulatory approvals and customary closing conditions, including listing of the Common Shares on the TSX Venture Exchange. All securities issued pursuant to the Offering will have a hold period of four months and one day.

The securities have not been, and will not be, registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), or any U.S. state securities laws, and may not be offered or sold in the United States without registration under the U.S. Securities Act and all applicable state securities laws or compliance with the requirements of an applicable exemption therefrom. This news release does not constitute an offer to sell or the solicitation of an offer to buy securities in the United States, nor may there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.

Certain directors and officers of the Company may participate in the Offering. A material change report with respect to the Offering is expected to be filed less than 21 days before the expected Closing Date, which is reasonable and necessary in the circumstances for the Company to take advantage of available financing opportunities.

About Fredonia

Fredonia, directly or indirectly, owns a 100% interest in certain license areas (totaling approximately 18,300 ha.) (collectively, the "Project"), all within the Deseado Massif geological region in the Province of Santa Cruz, Argentina, including the following principal areas: El Aguila, approx. 9,100ha, Petrificados, approx. 3,000ha, and the flagship, advanced El Dorado-Monserrat ("EDM") covering approx. 6,200ha located close to Anglo Gold Ashanti's Cerro Vanguardia mine, subject to a 1.5% net smelter return royalty on the EDM project, and a 0.5% net profits interest on Winki II, El Aguila I, El Aguila II and Petrificados.

Forward-looking Information Cautionary Statement

This news release contains "forward?looking information" within the meaning of the applicable Canadian securities legislation that is based on expectations, estimates, projections and interpretations as at the date of this news release. The information in this news release about the Offering; the use of the proceeds from the Offering; the jurisdictions in which the Units are offered or sold; the number of Units offered or sold; the gross proceeds from the Offering; the timing and ability of the Company to close the Offering, if at all; the timing and ability of the Company to satisfy the listing conditions of the TSX Venture Exchange, if at all; the prospects of the Project; the filing of a material change report with respect to the Offering; and any other information herein that is not a historical fact may be "forward-looking information". Any statement that involves discussions with respect to predictions, expectations, interpretations, beliefs, plans, projections, objectives, assumptions, future events or performance (often but not always using phrases such as "expects", or "does not expect", "is expected", "interpreted", "management's view", "anticipates" or "does not anticipate", "plans", "budget", "scheduled", "forecasts", "estimates", "believes" or "intends" or variations of such words and phrases or stating that certain actions, events or results "may" or "could", "would", "might" or "will" be taken to occur or be achieved) are not statements of historical fact and may be forward-looking information and are intended to identify forward-looking information. This forward-looking information is based on reasonable assumptions and estimates of management of the Company, at the time such assumptions and estimates were made, and involves known and unknown risks, uncertainties or other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking information. Such factors include, among others, risks relating to the Offering; volatility in the trading price of common shares of the Company; risks relating to the ability of the Company to obtain required approvals, complete definitive documentation and complete the Offering on the terms announced; ability of Fredonia to complete further exploration activities; property interests; the results of exploration activities; risks relating to mining activities; the global economic climate; metal prices; dilution; environmental risks changes in the tax and regulatory regime; and community and non-governmental actions. Although the forward-looking information contained in this news release is based upon what management believes, or believed at the time, to be reasonable assumptions, the Company cannot guarantee shareholders and prospective purchasers of securities of the Company that actual results will be consistent with such forward-looking information, as there may be other factors that cause results not to be as anticipated, estimated or intended, and neither Company nor any other person assumes responsibility for the accuracy and completeness of any such forward looking information. Company does not undertake, and assumes no obligation, to update or revise any such forward looking statements or forward-looking information contained herein to reflect new events or circumstances, except as may be required by law.

Neither 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.

For further information: Please visit the Company website www.fredoniamanagement.com or contact: Carlos Espinosa, Chief Financial Officer, Direct: +1-647-401-9292, Email: [email protected]



These press releases may also interest you

at 05:22
Today Binance Pool, the comprehensive cryptocurrency mining platform of Binance, announced its partnership with UltimusPool, a full-featured mining pool solution designed to provide easy-to-use, reliable, greener, and compliant services for global...

at 05:08
Over the past 25 years, since its return to the motherland, Hong Kong, as a special administrative region of China, has remained one of the most dynamic cities in the world. Meanwhile, China's decades-long drive for reform and opening up has stridden...

at 05:05
As part of an aggressive expansion plan for North America, German Doner Kebab USA (GDK USA) announced today it has hired Robert Bray as operations director and Mark Treptow as director of franchise development, along with recent hires Georgina...

at 05:00
Sugarbud Craft Growers Corp. ("Sugarbud" or the "Company") announces that it has entered into shares for services agreements with certain arm's length service providers, pursuant to which Sugarbud will issue a total of 665,020 Shares at a deemed...

at 05:00
57 Stars LLC, an independent global alternative investment firm targeting high-growth sectors driven by technological innovation, is pleased to announce it has led a USD 40 million investment in WayCool Foods & Products Private Limited ("WayCool"),...

at 04:39
News Summary Persistent Systems (BSE: PERSISTENT) (NSE: PERSISTENT) has been acknowledged as an 'Honored Company', one of the seven such companies across Asia (ex-Japan) by highly regarded sell-side analysts in the '2022 Asia Executive Team - Small...



News published on 6 april 2022 at 16:00 and distributed by: