Strongbow Exploration (SBW-V)
Strongbow closes initial tranche of private placement for gross proceeds of $1.33 million
Strongbow Exploration Inc. (TSX-V:SBW) ("Strongbow" or the "Company") is pleased to announce that it has closed the first tranche of a non-brokered private placement of common shares previously announced on August 30, 2017. Proceeds from the private placement will be used for general working capital.
On September 11, 2017, Strongbow issued 9,500,000 common shares to Osisko Gold Royalties Ltd ("Osisko") at $0.14 per share for gross proceeds of $1,330,000. Osisko is Strongbow's largest shareholder. Following this issuance, Osisko's basic shareholding increases to 23,833,333 common shares, representing 33.7% of Strongbow's issued and outstanding share capital; in addition, Osisko holds 7,333,333 warrants convertible into 7,333,333 common shares of the Company at an exercise price of $0.20. The common shares issued to Osisko are subject to a four month hold period which expires on January 12, 2018.
Osisko's participation in the private placement is a "related party transaction" within the meaning of Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions ("MI 61-101") and the policies of the TSX Venture Exchange. Strongbow is relying on the exemption from the requirement for a formal valuation found in paragraph (b) of Section 5.5 [Issuer not listed on specified markets] of MI 61-101. With respect to the requirement for minority holder approval, Strongbow is relying on the exemption found in paragraph 1(b) of Section 5.7 [Fair market value not more than $2,500,000] in MI 61-101.
For additional information please contact Richard Williams at (604) 638-8005 or by e-mail at r rwilliams@strongbowexploration.com.
Blytheweigh (Financial PR/IR - London)
Tel: +44 207 138 3204
Tim Blythe Tim.blythe@blytheweigh.com
Camilla Horsfall Camilla.horsfall@blytheweigh.com
Nick Elwes Nick.elwes@blytheweigh.com
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| ON BEHALF OF THE BOARD OF DIRECTORS
"Richard D. Williams"
Richard D. Williams, P.Geo
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. |
