First Vanadium Announces Closing Of Over-subscribed Private Placement – Awards Drill Contract
First Vanadium Corp. (TSXV: FVAN) (OTCQX: FVANF) (FSE: 1PY) (“First Vanadium” or the “Company”) announces that it has completed the closing of its non-brokered private placement (the “Offering”) previously announced on June 18, 2020 and increased on June 26, 2020. The Company has issued 10,666,667 units for gross proceeds of $1,600,000. All securities issued are subject to a four month hold period expiring November 10, 2020, in accordance with applicable securities laws and the policies of the TSX Venture Exchange.
Insiders of the Company purchased a total of 100,000 units under the private placement, which is considered a related party transaction within the meaning of Multilateral Instrument 61-101 Protection of Minority Security Holders in Special Transactions (“MI 61-101”). The Company relied on the exemptions from the valuation and minority shareholder approval requirements of MI 61-101 contained in Sections 5.5(a) and 5.7(a), respectively, of MI 61-101 in respect of such insider participation. No new insiders and no control persons were created in connection with the private placement.
In connection with the private placement, the Company paid cash finder’s fees totaling $13,072.50 and 87,150 non-transferable warrants. The warrants otherwise have the same terms as the unit warrants in that each is exercisable for a common share at a price of $0.26 for three years. These securities are also subject to a four month hold period expiring November 10, 2020, in accordance with applicable securities laws and the policies of the TSX Venture Exchange.
The Company has also awarded the drill contract to drill-test the gold opportunity on the Carlin Vanadium Project.
Paul Cowley, the Company’s CEO, stated: “We are very pleased with the interest and positive market response for our private placement. Most of the capital will be used tactically to drill-test this exciting target, guided by a proven mine finder, Dave Mathewson. We are moving decisively on the drill program by today awarding the drill contract and for drilling to commence next month.”
About First Vanadium Corp.
First Vanadium has an option to earn a 100% interest in the Carlin Vanadium Project, located in Elko County, 6 miles south from the town of Carlin, Nevada on Highway I-80. The Company announced the completion of a Preliminary Economic Assessment on the Project on May 11, 2020 and filed its Technical Report June 25, 2020.
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