Metals Creek Resources Corp. Closes Financing

Rhea-AI Summary

Metals Creek Resources Corp. (TSXV: MEK) (FSE: M1C1) has closed its non-brokered private placement financing, raising $122,000. The company issued 4,500,000 flow-through units at $0.025 per unit and 475,000 non-flow-through units. Each flow-through unit includes one flow-through common share and one warrant exercisable at $0.06 for 24 months. Non-flow-through units consist of one common share and one warrant exercisable at $0.05 for 24 months.

An insider subscribed for 475,000 non-flow-through units ($9,500). The company paid $6,000 in finders' fees and issued 240,000 broker warrants. Proceeds from flow-through units will fund drilling on the Tillex Copper Project and Shabaqua Corners Gold Property. All securities are subject to a four-month hold period, expiring November 18, 2024.

Positive

• Raised $122,000 through private placement financing
• Insider participation in the financing, showing confidence in the company
• Proceeds to be used for drilling on two key exploration projects

Negative

• Potential dilution of existing shareholders due to issuance of new shares and warrants
• Low unit price of $0.025 for flow-through units may indicate weak market perception

Thunder Bay, Ontario--(Newsfile Corp. - September 19, 2024) - Metals Creek Resources Corp. (TSXV: MEK) (FSE: M1C1) (the "Company" or Metals Creek) further to its July 23, 2024 news release, the Company announces that it has closed its non-brokered private placement financing (the "Financing") for aggregate gross proceeds of $122,000.

The Company has issued 4,500,000 flow-through units at a price of $0.025 per unit (the "FT Units"), each FT Unit consisting of one flow-through common share (the "FT Shares") and one non-flow-through common share purchase warrant (the "FT Warrants"), each FT Warrant entitling the holder to purchase one additional non-flow-through common share of the Company at an exercise price of $0.06 per common share for a period of 24 months from the date of issue. The FT Shares entitle the holder to receive the tax benefits applicable to flow-through shares, in accordance with provisions of the Income Tax Act (Canada).

The Company has also issued 475,000 non-flow-through units, each NFT Unit consisting of one non-flow-through common share and one non-flow-through common share purchase warrant (the "NFT Warrants"), each NFT Warrant entitling the holder to purchase one additional common share of the Company at an exercise price of $0.05 per common share for a period of 24 months from the date of issue.

One (1) insider in this first tranche closing, subscribed for $9,500 or 475,000 NFT Units, that portion of the Financing is a "related party transaction" as such term is defined under MI 61-101 - Protection of Minority Security Holders in Special Transactions. The Company relied on exemptions from the formal valuation requirement of MI-61-101 under sections 5.5(a) and (b) of MI 61-101 in respect of the transaction as the fair market value of the transaction, insofar as it involves the interested party, is not more than 25% of the Company's market capitalization.

All securities issued pursuant to the Financing are subject to a four-month and one-day hold period, expiring November 18, 2024.

In connection with this first tranche closing, the company paid cash finders' fees of $6,000 and issued 240,000 broker warrants to Accilent Financial Inc.

The proceeds raised from the FT Units will be used for drilling on the companies Tillex Copper Project and the Shabaqua Corners Gold Property and will ensure that such Canadian Exploration Expenses qualify as a "flow-through mining expenditure" for purposes of the Income Tax Act (Canada), related to the exploration of the Company's exploration projects.

About Metals Creek Resources Corp.

Metals Creek Resources Corp. is a junior exploration company incorporated under the laws of the Province of Ontario, is a reporting issuer in Alberta, British Columbia and Ontario, and has its common shares listed for trading on the Exchange under the symbol "MEK". Metals Creek has earned a 50% interest in the Ogden Gold Property from Newmont Corporation, including the former Naybob Gold mine, located 6 km south of Timmins, Ontario and has an 8 km strike length of the prolific Porcupine-Destor Fault (P-DF). In addition, Metals Creek owns and/or has option agreements in place to acquire a 100% interest in claims in the Shabaqua Corners area of North western Ontario.

Metals Creek also has multiple quality projects available for option which can be viewed on the Company's website. Parties interested in seeking more information about properties available for option can contact the Company at the number below.

Additional information concerning the Company is contained in documents filed by the Company with securities regulators, available under its profile at www.sedarplus.ca.

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.

Alexander (Sandy) Stares, President and CEO
Metals Creek Resources Corp
telephone: (709)-256-6060
fax: (709)-256-6061
MetalsCreek.com
Twitter.com/MetalsCreekRes
Facebook.com/MetalsCreek

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/223963

FAQ

How much did Metals Creek Resources Corp. (TSXV: MEK) raise in its recent financing?

Metals Creek Resources Corp. raised $122,000 in its recent non-brokered private placement financing.

What are the terms of the flow-through units issued by Metals Creek Resources Corp.?

Metals Creek Resources Corp. issued flow-through units at $0.025 each, consisting of one flow-through common share and one warrant exercisable at $0.06 for 24 months.

How will Metals Creek Resources Corp. use the proceeds from the flow-through units?

The proceeds from the flow-through units will be used for drilling on the Tillex Copper Project and the Shabaqua Corners Gold Property.

When do the securities issued in Metals Creek Resources Corp.'s financing become freely tradable?

The securities issued in the financing are subject to a four-month and one-day hold period, expiring on November 18, 2024.