TORONTO, ON--(Marketwired - February 02, 2017) - Stratabound Minerals Corp. (TSX VENTURE: SB) ("Stratabound" or "the Company") is pleased to announce a private placement financing of up to 5,300,000 units (the "Units") of the Company, at a price of $0.05 per Unit, for gross proceeds of up to $265,000. Each Unit consists of one common share and one-half of one common share purchase warrant (each whole warrant, a "Warrant"). Each Warrant will be exercisable for one common share at $0.05 for 24 months from the date of issue.
All securities issued pursuant to the private placement are subject to a statutory hold period of four months plus a day from the date of issuance in accordance with applicable securities legislation. Completion of the Offering remains subject to acceptance by the TSX Venture Exchange. The Company will pay a finder's fee of 5% in cash and 5% in warrants to acquire shares at the Unit price in respect of a portion of the private placement.
The proceeds of the private placement will be used by the Company to finance the Company's continued pursuit of an accretive acquisition and for general corporate purposes. The Company is currently in detailed discussions on a significant acquisition and will continue to update the market concerning potential acquisition activity as developments warrant.
Certain insiders of the Company will acquire Units under the private placement. The participation by such insiders is considered to be a "related party transaction", as defined under Multilateral Instrument 61-101 ("MI 61-101"). The Company intends to rely on the exemptions from the valuation and minority shareholder approval requirements of MI 61-101 contained in sections 5.5(b) and 5.7(1)(b) of MI 61-101 in respect of such insider participation.
President and CEO Terry Byberg commented, "We are extremely pleased to announce this private placement which will support the Company in its due diligence efforts as we continue to pursue an accretive acquisition that will provide a basis to transition Stratabound into a development / operating company. We have reviewed a number of possible opportunities over the past year and are now focused on a project that is a good fit for Stratabound and its corporate strategy."
About Stratabound Minerals Corp.
Stratabound Minerals Corp. is a public company focused on the exploration of its base metal properties in New Brunswick and the acquisition of base and precious metals properties in the Americas which are producing or capable of restarting operations within eighteen months or less.
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.
WARNING: the Company relies upon litigation protection for "forward looking" statements. The information in this release may contain forward-looking information under applicable securities laws. This forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from those implied by the forward-looking information. Factors that may cause actual results to vary materially include, but are not limited to, inaccurate assumptions concerning the exploration for and development of mineral deposits, currency fluctuations, unanticipated operational or technical difficulties, changes in laws or regulations, failure to obtain regulatory or shareholder approval, the risks of obtaining necessary licenses and permits, changes in general economic conditions or conditions in the financial markets and the inability to raise additional financing. Readers are cautioned not to place undue reliance on this forward-looking information. The Company does not assume the obligation to revise or update this forward-looking information after the date of this release or to revise such information to reflect the occurrence of future unanticipated events, except as may be required under applicable securities laws.