SB: TSX Venture Exchange
CALGARY, June 18, 2014 /CNW/ - Stratabound Minerals Corp. has entered into an investor relations agreement with FronTier Consulting Ltd. of Toronto, Ontario, part of the FronTier Merchant Capital Group, subject to regulatory approval. FronTier will provide the Company with advice and assistance in coordinating and organizing general investor relations activities for the next 12 months. FronTier's objective is to increase market awareness of Stratabound using a variety of market communications initiatives, including in-person introductions with institutional and retail brokers and investors in a number of cities; press release distribution to registered brokers, individual investors, and industry contacts and colleagues; and use of FronTier's social media and website outlets. The Company will pay FronTier $5,000 per month and grant 300,000 incentive options, each one entitling the holder to acquire one share for $0.05, subject to regulatory approval.
Stratabound has closed a first tranche of $325,000 of its recently announced private placement financing. FronTier has subscribed for $75,000 of the private placement. Stratabound insiders are subscribing for a minimum of $250,000. The size of the offering is a maximum of $1,000,000, comprising up to 4,000,000 units at $0.25, each unit consisting of four flow through shares, one non-flow through share, and 2½ warrants, with each whole warrant entitling the holder to subscribe for one additional share for two years at $0.10 per share.
Any shareholder of Stratabound as at June 4, 2014 is eligible to purchase units up to $15,000 pursuant to the recently adopted security holder prospectus exemption in all Canadian jurisdictions other than Ontario and Newfoundland. Under the new regulation, there is no longer a need for an existing shareholder to qualify under the "accredited investor" or other previous exemptions in order to participate in a private placement financing. For larger investments the previous exemptions are still applicable. In the event there is an over subscription of shares, the Company reserves the right to either reject subscriptions at its discretion, allocate on a pro rata basis or increase the offering. There is no minimum subscription.
The proceeds of the financing will be used for drilling, trenching, and geophysical exploration of base and precious metal massive sulphide targets on the Captain, Commander, and CNE properties in New Brunswick's Bathurst Mining Camp, and for general corporate purposes. These targets include a prominent gravity anomaly, iron formations, and magnetic and electromagnetic anomalies that Stratabound has identified along the contact between the Nepisiguit Falls and Flat Landing Brook Formations. This geological contact is the "Brunswick Mine Horizon", which is the location for world-class volcanogenic massive sulphide deposits in the Bathurst Camp.
On May 16, 2014, Stratabound received notification from the Province of New Brunswick that a grant of $40,000 had been awarded to the Company for this project under the Junior Mining Assistance Program.
About Stratabound Minerals Corp.
Incorporated in March 1986, Stratabound Minerals Corp. is in the business of mineral exploration and evaluation, with base metal, silver and gold properties primarily in the Bathurst Mining Camp in the Province of New Brunswick. During 2013 the Company completed a mining and milling campaign on its Captain North Extension (CNE) Mining Lease near Bathurst in northeast New Brunswick, with volcanogenic zinc-lead-silver massive sulphide ore trucked to Xstrata Zinc's Brunswick No. 12 mill for production of saleable concentrates.
"In recognition of valuable contributions to the mining and minerals industry of New Brunswick", and for achievements in developing, mining, and reclaiming the CNE within one year, Stratabound was presented the 2013 Developer of the Year Award by the Hon. Craig Leonard, Minister of Natural Resources, following a unanimous vote by the New Brunswick Prospectors and Developers Association.
As the Xstrata (now Glencore) mill is no longer operational, Stratabound's 2014 activities are directed towards discovering a larger massive sulphide deposit on its Captain, CNE, or optioned Commander claims, sufficiently large to support a mill of its own.
The technical information contained in this release has been reviewed by John Duncan, P.Geo. and Stan Stricker, P.Geol., Qualified Persons as defined in National Instrument 43-101.
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.
WARNING: the Company relies upon litigation protection for "forward looking" statements. The information in this release may contain forward-looking information under applicable securities laws. This forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from those implied by the forward-looking information. Factors that may cause actual results to vary materially include, but are not limited to, inaccurate assumptions concerning the exploration for and development of mineral deposits, currency fluctuations, unanticipated operational or technical difficulties, changes in laws or regulations, the risks of obtaining necessary licenses and permits, changes in general economic conditions or conditions in the financial markets and the inability to raise additional financing. Readers are cautioned not to place undue reliance on this forward-looking information. The Company does not assume the obligation to revise or update this forward-looking information after the date of this release or to revise such information to reflect the occurrence of future unanticipated events, except as may be required under applicable securities laws.
SOURCE: Stratabound Minerals Corp.
For further information: Stan Stricker, P. Geol, President, 403-258-3630, [email protected], www.stratabound.com; FronTier Merchant Capital Group, 1 King Street West - Suite 1411, Toronto, ON M5H 1A1