VANCOUVER, Oct. 10, 2013 /CNW/ - Brixton Metals Corporation (TSXV: BBB) (the "Company" or "Brixton") announces that it is increasing the size of its non-brokered private placement financing (the "Private Placement") previously announced on September 19, 2013. The Private Placement now provides for the issuance of 12,533,106 units of the Company (the "Units") at a price of $0.10 per Unit, 1,460,000 flow-through shares (the "FT Shares") at a price of $0.10 per FT Share and 360,730 common shares ("Shares") at a price of $0.075 per Share for total gross proceeds of approximately $1,426,365. Each Unit will consist of one common share and one transferable common share purchase warrant ("Warrant") with each Warrant exercisable by the holder into one common share of the Company at a price of $0.15 per share for a period of 24 months from the closing date.
Mr. Rob McEwen, the founder and former Chairman and CEO of Goldcorp Inc. and founder and Chief Owner of McEwen Mining, will subscribe for 10,000,000 Units ($1M) of the total offering amount.
"We are very excited to have Mr. Rob McEwen as a shareholder of Brixton Metals; this is a further endorsement to Hecla's support of our Thorn project," stated Chairman and CEO, Mr. Gary R. Thompson. "We are looking forward to drilling this fall as we advance the high-grade mineralized zones towards a defined resource."
Hecla Mining Company ("Hecla") is exercising its pre-emptive right under the Private Placement in order to maintain its pro-rata interest in the Company pursuant to the terms of an ancillary rights agreement between Brixton and Hecla dated February 26, 2013 (the "Ancillary Rights Agreement"). As a result, a wholly-owned subsidiary of Hecla will subscribe for 360,730 Shares at a price of $0.075 per Share and 2,483,106 Units at a price of $0.10 per Unit for aggregate gross proceeds of approximately $275,365. On closing, Hecla will own approximately 19.8% of the Company's issued and outstanding common shares. Pricing of the Shares was determined in accordance with the terms of the Ancillary Rights Agreement.
All securities issued pursuant to the Private Placement will be subject to a four month and one day hold period.
The closing date for the Private Placement will occur on October 11, 2013, or such later date as may be required. The proceeds from the Private Placement will be used to fund exploration activities at the Company's Thorn property and general working capital. On closing, finder's fees totalling $70,000 in cash and 700,000 non-transferable finder's warrants will be paid and issued in accordance with the policies of the TSX Venture Exchange.
About Brixton Metals Corporation and its Thorn Project
Brixton Metals is an exploration company focused on the advancement of high-grade precious metal assets to feasibility. The primary focus at the Thorn project is high-grade silver-gold-lead-zinc-bearing diatreme-breccia zones and high-grade gold-silver-copper veins. Secondary targets include porphyry, skarn, replacement, and bulk tonnage gold targets. The Thorn project covers a Jurassic to Cretaceous volcanic-porphyry complex that shares similarities with other high sulphidation deposits around the world such as Lepanto-FSE in the Philippines, Penasquito in Mexico and El Indio in Chile. The 27,000-hectare Thorn Project is located in the Sutlahine River area of Northwestern British Columbia, Canada, approximately 40 km from Chieftain's Tulsequah Chief mine development.
Brixton Metals Corporation shares trade on the TSX-V under the ticker symbol BBB. For more information about Brixton please visit our website at www.brixtonmetals.com.
On Behalf of the Board of Directors
Mr. Gary R. Thompson, Chairman and CEO,
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Information set forth in this news release may involve forward-looking statements under applicable securities laws. Forward-looking statements are statements that relate to future, not past, events. In this context, forward-looking statements often address expected future business and financial performance, and often contain words such as "anticipate", "believe", "plan", "estimate", "expect", and "intend", statements that an action or event "may", "might", "could", "should", or "will" be taken or occur, or other similar expressions. All statements, other than statements of historical fact, included herein including, without limitation; statements about the closing date and use of proceeds are forward-looking statements. By their nature, forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements, or other future events, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, the following risks: the need for additional financing; operational risks associated with mineral exploration; fluctuations in commodity prices; title matters; environmental liability claims and insurance; reliance on key personnel; the potential for conflicts of interest among certain officers, directors or promoters with certain other projects; the absence of dividends; competition; dilution; the volatility of our common share price and volume and the additional risks identified the management discussion and analysis section of our interim and most recent annual financial statement or other reports and filings with the TSX Venture Exchange and applicable Canadian securities regulators. Forward-looking statements are made based on management's beliefs, estimates and opinions on the date that statements are made and the Company undertakes no obligation to update forward-looking statements if these beliefs, estimates and opinions or other circumstances should change, except as required by applicable securities laws. Investors are cautioned against attributing undue certainty to forward-looking statements.
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SOURCE: Brixton Metals Corporation
For further information:
Mr. Gary R. Thompson, Chairman and CEO,