Brixton Metals Pursues Private Placement to Boost Funding

Brixton Metals Launches Major Flow-Through Placement

Brixton Metals Corporation (TSX-V: BBB, OTCQB: BBBXF) has taken a significant step forward by announcing its latest private placement offering. This initiative aims to raise up to $6 million through the issuance of flow-through units, known as FT Units, priced at $0.09 each. This decision reflects the Company's strong commitment to advancing its mining projects and increasing shareholder value.

Details of the Flow-Through Units

Each FT Unit comprises one common share classified as a flow-through share, aligned with the provisions of the Income Tax Act (Canada). Additionally, each FT Unit includes one half of a warrant. The complete warrant entitles holders to purchase a common share at $0.12 for up to two years following the closing date of the offering.

Usage of Proceeds from the Offering

Proceeds from this private placement will be strategically allocated. Half of the funds are earmarked for “flow-through mining expenditures,” while the remaining funds will focus on “flow-through critical mineral mining expenditures.” The Company's Board of Directors will evaluate the exploration data to determine the exact allocation of these funds to maximize the impact on their projects.

Regulatory Approvals and Finder's Fees

As with any securities offering, this private placement is contingent upon approval by the TSX Venture Exchange. Additionally, there may be finder’s fees payable to those who connect the Company with potential subscribers, highlighting Brixton’s proactive approach to engaging with its network.

A Commitments to Shareholder Engagement

Gary R. Thompson, the Chairman and CEO, emphasizes the importance of this initiative. He states that it aims not only to enhance the operational capacity of Brixton Metals but also to reinforce commitment to its shareholders. The Company continually seeks innovative financing strategies to support its growth and exploration programs.

Investor Communication and Contact Information

To keep investors informed, Brixton Metals will maintain open lines of communication. For inquiries regarding the offering or any other information, interested parties can contact Mr. Gary R. Thompson directly at 604-630-9707 or via email at info@brixtonmetals.com.

Conclusion on the Offering

This flow-through private placement represents a pivotal opportunity for Brixton Metals to secure funding while also providing investors with a beneficial vehicle for investment. As the Company moves forward with this offering, it is poised to enhance its operational capacity and explore new mining opportunities effectively.

Frequently Asked Questions

What is the purpose of Brixton Metals' private placement?

The private placement aims to raise up to $6 million to fund mining expenditures and critical mineral exploration.

What are flow-through shares?

Flow-through shares are equity instruments issued by resource companies that allow shareholders to benefit from certain tax incentives associated with the expenditures incurred by the company.

How will the raised funds be utilized?

Funds will be used for mining expenditures as defined by the Income Tax Act and other strategic resources identified by the Board of Directors.

Who can subscribe to this offering?

The offering is open to interested investors, subject to compliance with securities regulations and TSX Venture Exchange approval.

What are the potential benefits for investors?

Investors may receive tax benefits from the flow-through shares while also gaining exposure to the growth prospects of Brixton Metals’ mining operations.

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