Sirios Resources Inc.
TSX VENTURE : SOI

Sirios Resources Inc.

April 22, 2016 11:37 ET

Sirios Closes Private Placements for CA$5.5M

MONTREAL, QUEBEC--(Marketwired - April 22, 2016) - Management of SIRIOS RESOURCES INC. (TSX VENTURE: SOI) is pleased to announce the completion of two non-brokered private placements for aggregate gross proceeds of CA$5,500,000. An amount of CA$3,500,000 was raised by issuing 17,500,000 units at CA$0.20 per unit, while another CA$2,000,000 was raised by issuing 6,666,667 flow-through shares at CA$0.30.

Goldcorp Inc. ("Goldcorp") has exercised its right to acquire up to 19.9% of the share capital of Sirios on a partially diluted basis by acquiring 6,745,220 units for an amount of CA$1,349,044.

Each unit consists of one common share of Sirios and one-half of one share purchase warrant. Each full warrant gives the holder the right to purchase one common share at an exercise price of CA$0.28 per share during the twelve months following the closing date.

Dominique Doucet, President of Sirios, states: ''We are very pleased to have solid support from numerous corporate investors and our current institutional and corporate shareholders, who subscribed for almost 80% of today's placements. The acquired funds will allow a rapid and organized progression of the Cheechoo gold project as defined in our three-year plan announced last year.''

There will be a hold period of four months and one day on all securities issued under these placements. The TSX Venture Exchange has conditionally approved the private placements. A total of CA$30,280 of finder's fees were paid for these placements.

The proceeds of the placements will be used by Sirios for exploration fieldwork, including a significant diamond drilling program, on its Cheechoo gold project as well as for general corporate and working capital purposes. Cheechoo neighbours Goldcorp's Éléonore gold mine located in Eeyou Istchee James Bay. Please refer to Sirios' website for more information on this project.

Sirios has been advised that Goldcorp acquired ownership of 6,745,220 units at a subscription price of CA$0.20 per unit for a total purchase price of CA$1,349,044. Accordingly, Goldcorp acquired ownership of (i) 6,745,220 common shares, representing 6.8% of the issued and outstanding common shares, and (ii) 3,372,610 warrants, representing approximately 21.4% of the issued and outstanding warrants. Following the acquisition, Goldcorp owns 14,145,220 common shares, representing approximately 14.2% of the issued and outstanding common shares and 7,072,610 warrants, representing approximately 45% of the issued and outstanding warrants. Should Goldcorp exercise all of the warrants, Goldcorp would hold 21,217,830 common shares representing approximately 19.9% of the issued and outstanding common shares (on a partially diluted basis). Goldcorp acquired the securities for investment purposes. Goldcorp will evaluate its investment in Sirios from time to time and may, based on such evaluation, market conditions and other circumstances, increase or decrease shareholdings as circumstances require. The exemption relied on for the acquisition of the Units is Section 2.3 of National Instrument 45-106 - Prospectus Exemptions. A copy of the Early Warning report filed by Goldcorp in connection with the acquisition is available on Sirios' SEDAR profile. Goldcorp's head office is located at Suite 3400 - 666 Burrard St. Vancouver, BC, V6C 2X8.

Neither the 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.

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