THUNDER BAY, ONTARIO--(Marketwired - Nov. 30, 2016) -
NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
Source Exploration Corp. ("Source" or the "Company") (TSX VENTURE:SOP) is pleased to announce that it has closed a tranche of its previously announced non-brokered private placement (the "Private Placement") consisting of 5,192,500 units of the Company (the "Units") at a price of $0.15 per Unit for gross proceeds of $778,875. Each Unit consisted of one common share of the Company (a "Common Share") and one transferable common share purchase warrant (a "Warrant"). Each Warrant entitles the holder to purchase one Common Share at a price of $0.25 per Common Share until November 30, 2018 (subject to acceleration of the expiry date as described below).
The net proceeds from this tranche of the Private Placement will be used to continue exploration on the Company's Las Minas project located in the State of Veracruz, Mexico, and for property payments, debt reduction and general working capital purposes. The exploration program will include a 2,000 to 3,000 metre drill program for definition and expansion of the Eldorado-Juan Bran mineralized zone and an initial National Instrument 43-101 resource technical report.
In connection with this tranche of the Private Placement, the Company has: (i) paid an aggregate of $42,438 in cash finder's fees to Leede Jones Gable Inc., PI Financial Corp., Haywood Securities Inc., Alfred Gregorian, Gabriela Gates and Michael Whistle, representing 8% of the gross proceeds of the Units that were sold to subscribers introduced by such parties; and (ii) issued an aggregate of 270,920 non-transferable warrants (the "Finder's Warrants") to purchase 270,920 Common Shares to Leede Jones Gable Inc., PI Financial Corp., Haywood Securities Inc., Alfred Gregorian and Michael Whistle, representing 8% of the Units that were sold to subscribers introduced by such parties. The Finder's Warrants have the same terms as the Warrants.
Pursuant to the terms of the Warrants and the Finder's Warrants, the Company has the right to accelerate the expiry date of the Warrants and the Finder's Warrants on notice to the holders of the Warrants and the Finder's Warrants, if at any time after March 31, 2017 the closing price of its Common Shares on a stock exchange in Canada is greater than $0.40 per Common Share for a period of 10 consecutive trading days, in which case the Warrants and the Finder's Warrants will expire 30 days after the date on which such notice is given.
The securities issued under this tranche of the Private Placement are subject to a hold period under applicable Canadian securities laws which will expire on March 31, 2017.
The Company intends to close the second tranche of the Private Placement as soon as practicable, and the second tranche of the Private Placement is subject to receipt of all required regulatory approvals including the approval of the TSX Venture Exchange.
About Source Exploration Corp.
Source is a Canadian based mineral exploration company committed to building long-term value through the discovery, acquisition and advancement of mineral properties. The Company holds an option on the Las Minas gold, silver and copper exploration project located within the Las Minas mining district in the State of Veracruz, Mexico. The district hosts one of the largest underexplored skarn systems known in Mexico and has a strong production history that dates back to the Aztec era.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION: This news release includes certain information that may constitute "forward-looking information" under applicable Canadian securities legislation. Forward-looking information includes, but is not limited to, statements about the anticipated closing date of the second tranche of the Private Placement, the future exploration results relating to the Las Minas project, exploration plans for the Las Minas project and the exploration potential of the Las Minas project. Forward-looking information is necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking information, including the risks identified in the Company's disclosure documents. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. All forward-looking information contained in this press release is given as of the date hereof and is based upon the opinions and estimates of management and information available to management as at the date hereof. The Company disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as 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.