BCM Resources closes $7.18-million private placement

Executive Summary

• BCM Resources Corp. has closed a non-brokered private placement raising $7.18 million.
• The financing consists of 35.9 million units priced at $0.20 per unit, each accompanied by a one-year warrant exercisable at $0.30.
• Proceeds will be allocated to general corporate purposes and to fund the ongoing drilling program at the Thompson Knolls porphyry copper-gold-molybdenum discovery project.

Key Details

• Gross proceeds: $7.18 million
• Units issued: 35.9 million
• Price per unit: $0.20
• Warrant terms: One-year warrants exercisable at $0.30 per share
• Acceleration clause: If the share price reaches $0.45 or higher for 20 consecutive trading days after 4 months and 1 day from closing, the issuer may accelerate warrant expiration to 30 business days after issuing a news release announcing the exercise.
• Hold period: Four months from the date of issue for all issued securities
• Use of proceeds: General corporate purposes and continuing drilling program at Thompson Knolls
• Insider participation: 4,675,000 units purchased for $935,000 by a company insider
• Regulatory reliance: Exemptions from valuation and minority shareholder approval requirements under MI 61-101 sections 5.5(a) and 5.7(1)(a)
• Finder's fees: $61,250 (5% of some subscriptions) plus 306,250 non-transferable 12-month $0.30 broker warrants (5% of some subscriptions)
• Accelerator clause applicability: Also applies to the broker warrants issued as finder's fees
• Regulatory approval: Placement is subject to final approval by the TSX Venture Exchange