Temas Enters Into Letter of Intent With Crescita Capital for CAD$5 Million in Equity Capital
VANCOUVER, British Columbia--(BUSINESS WIRE)--Temas Resources Corp. (“Temas”) (CSE: TMAS) is pleased to announce that it has entered into a Letter of Intent (the “Letter of Intent”) for an equity investment of CAD$5 million (the “Equity Investment Facility”) with Crescita Capital LLC (“Crescita Capital”), representing the first major institutional backing for Temas.
Temas enters into letter of intent with Crescita Capital for CAD$5 million in equity capitalTweet this
The Equity Investment Facility is for an aggregate amount of CAD$5 million and Temas will have three years to utilize the CAD$5 million to expand and develop its assets. In addition, Temas may use the Equity Investment Facility as security, with the consent of Crescita Capital, to secure additional financing avenues if it so chooses.
Temas can draw down funds from the CAD$5 million Equity Investment Facility from time to time during the three year term at Temas’ discretion by providing a notice to Crescita Capital (“Drawdown Notice”), and in return for each Drawdown Notice funded by Crescita Capital, Temas will allot and issue fully paid shares to Crescita Capital (each, a “Private Placement”). The shares issued in connection with any Private Placement will be priced at the higher of (i) the floor price set by Temas and (ii) 90% of the average closing bid price resulting from the following ten days of trading after the Drawdown Notice (“Pricing Period”). The Drawdown Notice amount requested by Temas cannot exceed 700% of the average daily trading volume of the Pricing Period.
The Company has also agreed in connection with the Letter of Intent to pay a 3% commission ($150,000) in cash or shares at a deemed price of $0.25 per share and issue warrants equal to 8% of the outstanding shares of Temas at an exercise price of $0.25 per share for a period of three years (together, the “Commitment Fee”). The Commitment Fee will be paid upon the execution of a definitive agreement to be entered into between Temas and Crescita Capital in connection with the Equity Investment Facility. There is no interest attached to the Equity Investment Facility.
“The Equity Investment Facility with Crescita Capital will provide Temas with access to the necessary capital to aggressively continue the exploration and development of its properties” said Kyler Hardy, CEO of Temas. "This step gives us confidence that we can get our pending La Blache property acquisition through the feasibility stage, which we are very excited for.”
About Crescita Capital LLC
Crescita Capital is an investment and consultancy group that provides financing and corporate development services for growth-stage companies in markets around the world (www.crescitacapital.com).
About Temas Resources Corp.
Temas Resources Corp. is a mineral exploration company focused on the acquisition, exploration and development of Iron, Titanium and Vanadium properties in Canada. The Company has an option to acquire a 100% interest in the DAB Property which consists of 128 contiguous mineral claims which cover 6,814 hectares (68.14 km2) within the Grenville Geological Province located in Quebec, Canada.
On behalf of the Board of Directors of Temas Resources Corp.,
Forward Looking Statements
This news release includes certain “Forward?Looking Statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995 and “forward?looking information” under applicable Canadian securities laws. When used in this news release, the words “anticipate”, “believe”, “estimate”, “expect”, “target”, “plan”, “forecast”, “may”, “would”, “could”, “schedule” and similar words or expressions, identify forward?looking statements or information. These forward?looking statements or information relate to, among other things: entry into a definitive agreement for the Equity Investment Facility, closing of the Equity Investment Facility, the Company’s plan to build an advanced base and special metals portfolio, the development of the La Blache Property, including drilling activities; and future mineral exploration, development and production, the funding of the Company pursuant to the Equity Investment Facility, the issuance of securities pursuant to the Equity Investment Facility, and the resale restrictions and arrangements relating to such securities.
Forward?looking statements and forward?looking information relating to any future mineral production, liquidity, enhanced value and capital markets profile of Temas, future growth potential for Temas and its business, and future exploration plans are based on management’s reasonable assumptions, estimates, expectations, analyses and opinions, which are based on management’s experience and perception of trends, current conditions and expected developments, and other factors that management believes are relevant and reasonable in the circumstances, but which may prove to be incorrect. Assumptions have been made regarding, among other things, the price of silver, gold and other metals; no escalation in the severity of the COVID-19 pandemic; costs of exploration and development; the estimated costs of development of exploration projects; Temas’ ability to operate in a safe and effective manner and its ability to obtain financing on reasonable terms.
These statements reflect Temas’ respective current views with respect to future events and are necessarily based upon a number of other assumptions and estimates that, while considered reasonable by management, are inherently subject to significant business, economic, competitive, political and social uncertainties and contingencies. Many factors, both known and unknown, could cause actual results, performance or achievements to be materially different from the results, performance or achievements that are or may be expressed or implied by such forward?looking statements or forward-looking information and Temas has made assumptions and estimates based on or related to many of these factors. Such factors include, without limitation: the Company’s dependence on one mineral project; precious metals price volatility; risks associated with the conduct of the Company’s mining activities in Quebec; regulatory, consent or permitting delays; risks relating to reliance on the Company’s management team and outside contractors; risks regarding mineral resources and reserves; the Company’s inability to obtain insurance to cover all risks, on a commercially reasonable basis or at all; currency fluctuations; risks regarding the failure to generate sufficient cash flow from operations; risks relating to project financing and equity issuances; risks and unknowns inherent in all mining projects, including the inaccuracy of reserves and resources, metallurgical recoveries and capital and operating costs of such projects; contests over title to properties, particularly title to undeveloped properties; laws and regulations governing the environment, health and safety; the ability of the communities in which the Company operates to manage and cope with the implications of COVID-19; the economic and financial implications of COVID-19 to the Company; operating or technical difficulties in connection with mining or development activities; employee relations, labour unrest or unavailability; the Company’s interactions with surrounding communities and artisanal miners; the Company’s ability to successfully integrate acquired assets; the speculative nature of exploration and development, including the risks of diminishing quantities or grades of reserves; stock market volatility; conflicts of interest among certain directors and officers; lack of liquidity for shareholders of the Company; litigation risk; and the factors identified under the caption “Risk Factors” in Temas’ management discussion and analysis. Readers are cautioned against attributing undue certainty to forward?looking statements or forward-looking information. Although Temas has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that cause results not to be anticipated, estimated or intended. Temas does not intend, and does not assume any obligation, to update these forward?looking statements or forward-looking information to reflect changes in assumptions or changes in circumstances or any other events affecting such statements or information, other than as required by applicable law.
Temas Resources Corp. Investor Relations
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