Vancouver, British Columbia April 1, 2019 – Crystal Lake Mining Corporation (the “Company” or “Crystal Lake”) is pleased to announce that the Company has closed the third and final tranche of its recently announced hard dollar (“Unit Private Placement”) and flow-through (“FT Private Placement”) non-brokered financings, raising total gross proceeds of $4,596,187.
Unit Private Placement – Third Tranche
Crystal Lake has issued an additional 525,000 units at 22.5 cents per unit in this third tranche with each unit consisting of one common share in the capital of the Company and one share purchase warrant for gross proceeds of $118,125. Each warrant entitles the holder to purchase one share of the Company for a period of 24 months from the closing of the offering at an exercise price of 35 cents per share. The total non-brokered hard dollar private placement gross proceeds from the three tranches amounted to $4,096,187 (18,205,276 units issued).
The warrants issued in the Unit Private Placement are subject to an acceleration provision that states in the event the closing price of the Company’s shares on the TSX Venture Exchange (TSXV), or such other exchange on which the Company’s shares may become traded, is $0.75 (CDN) or greater per share during any fifteen (15) consecutive trading day period at any time subsequent to four months and one day after the
closing date, the warrants will expire at 4:00 p.m. (Vancouver time) on the 30th day after the date on which the Company provides notice of such accelerated expiry to the holders of the warrants.
Flow-through Private Placement
As part of this third tranche, and separate from the previously completed flow-through private placement in the second tranche (1,250,000 flow-through shares at 32 cents per share with no warrant for gross proceeds of $400,000), Crystal Lake has issued 288,500 flow-through units at 35 cents per share for gross proceeds of $100,975. Each unit includes a full warrant exercisable at 45 cents per share for a period of 24 months from closing.
Total flow-through private placement gross proceeds from the second and third tranches are $500,975 (1,538,500 flow-through shares/units).
In connection with the three tranches, the company paid $51,620 in cash finders’ fees and issued 151,200 broker warrants. A total of 100,000 broker warrants entitle the holder to acquire one additional share at an exercise price of 32 cents for a period of 24 months from closing. The balance of the broker warrants (51,200) entitle the holder to acquire one additional share at an exercise price of 45 cents, also for a period of two years from closing.
Use of Proceeds
Proceeds from the Unit Private Placement will be for general working capital purposes and to complete the first phase of Crystal Lake’s 2019 drilling and exploration program (at least $3 million) at the Newmont Lake Project in the Eskay region, optioned from Romios Gold (RG: TSXV), starting this quarter. Flow-through funds raised in this third tranche ($100,975) are for flow-through eligible exploration expenses at Newmont Lake and the Company’s Nicobat Project in northwest Ontario.
All securities in the Unit Private Placement and the FT Private Placements are subject to a four-month hold period from closing, and the three tranches are subject to the approval of the TSX Venture Exchange.
Stock Options Granted
The Company is also pleased to announce that, pursuant to the company’s stock option plan, it has granted incentive stock options to its directors, officers, employees and consultants to purchase an aggregate of 1,120,000 shares at an exercise price of 30 cents per share for up to two years.
About Crystal Lake Mining
Crystal Lake Mining is a Canadian-based junior exploration company focused on creating shareholder wealth through high-impact new mineral discoveries in the prolific Eskay region of Northwest British Columbia and in Northwest Ontario.
For further information please contact:
MarketSmart Communications Inc.
On behalf of The Board of Directors of Crystal Lake Mining Corporation,
Richard Savage, President & CEO
This news release may contain certain “forward looking statements”. Forward-looking statements involve known and unknown risks, uncertainties, assumptions and other factors that may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Any forward-looking statement speaks only as of the date of this news release and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise.
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.[/vc_column_text][/vc_column][/vc_row]