Brixton Metals (BBB-V) investor to acquire 17.25 million shares
Feb 21, 2013 - News Release
Brixton Metals Corp. has entered into a partnership with Hecla Mining Company pursuant to which a wholly owned subsidiary of Hecla has agreed to acquire 17.25 million common shares of the company, representing 19.8 per cent of the outstanding shares, at a price of 15 cents per share for total gross proceeds to Brixton of $2,587,500.
Gary Thompson, chairman and chief executive officer of Brixton Metals, stated: "Hecla's endorsement through this strategic investment is a huge vote of confidence for Brixton and speaks volumes to the potential of the Thorn project. Hecla also brings a wealth of knowledge gained from 120 years of mining and exploration experience, and this expertise will add great strength to the Brixton team."
Proceeds from this non-brokered financing will be applied to completing the 100-per-cent acquisition of the Thorn project and further exploration at Thorn during the coming field season.
On closing of the financing, Hecla will be granted various rights pursuant to the terms of an ancillary rights agreement, exercisable for so long as Hecla holds at least a 10.0-per-cent interest in Brixton (calculated in accordance with that agreement). These rights include: (a) a right to nominate one person to Brixton's board of directors, (b) a right to nominate one person to a technical committee, to be established to design and execute the company's exploration programs at the Thorn property, (c) a pre-emptive right to participate in any future proposed equity offering of Brixton to maintain its pro rata interest. Pursuant to the terms of the ancillary rights agreement, Hecla will also agree to a voting agreement, whereby Hecla will vote all shares held by it in favour of management's proposals on matters of routine business for a period of 12 months from the closing date of the financing.
All securities issued in the financing will be subject to a statutory four-month-and-one-day hold period. The financing is subject to a number of conditions, including, without limitation, receipt of all regulatory approvals, including approval of the TSX Venture Exchange.
The closing date for the financing is expected to be on or about Feb. 26, 2013. The remaining net proceeds from the financing will be used to undertake exploration on the Thorn property and for general corporate purposes.
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