Heritage Mining closes $665,000 tranche of financing

Executive Summary

• Heritage Mining Ltd. has closed the first tranche of its non-brokered private placement, raising gross proceeds of $665,000.
• The company issued 8 million units and 8,625,000 flow-through shares, with proceeds allocated to exploration drilling on the Melba and Drayton-Black Lake projects and general working capital.
• Insiders participated in the offering, and the company paid specific finder's fees in cash and warrants to eligible finders.

Key Details

• Total Gross Proceeds: $665,000.
• Units Issued: 8,000,000 units at $0.04 per unit, generating $320,000 in gross proceeds.
  • Each unit consists of one common share and one common share purchase warrant.
• Flow-Through Shares Issued: 8,625,000 flow-through shares at $0.04 per share, generating $345,000 in gross proceeds.
  • Proceeds from flow-through shares are designated for eligible Canadian exploration expenses qualifying as flow-through mining expenditures and the critical mineral exploration tax credit.
• Warrant Terms (Units):
  • Exercise Price: $0.05 per warrant share.
  • Expiration: 60 months from the closing date.
• Finder's Fees:
  • Cash: $21,600 paid to eligible finders.
  • Warrants: 525,000 compensation unit warrants issued.
    • Each compensation unit warrant entitles the holder to acquire one common share and one warrant of the company.
    • Exercise Price: $0.04.
    • Expiration: 60 months following the closing date.
  • Additional Fee: 1.0% cash compensation on units issued pursuant to a president list, payable per Canadian Securities Exchange rules.
• Use of Proceeds: Financing follow-up exploration and drilling programs on the Melba project and Drayton-Black Lake project, plus general working capital.
• Hold Period: Securities are subject to a four-month hold period under applicable securities laws.
• Insider Participation: Insiders acquired an aggregate of 3,500,000 units and 1,000,000 flow-through shares.
  • Transactions classified as related party transactions under Multilateral Instrument 61-101.
  • Exemptions relied upon from formal valuation and minority shareholder approval requirements as the fair market value involving interested parties does not exceed 25% of the company's market capitalization.

Notable Quotes

• "This prompt closing of the first tranche allows Heritage Mining to maintain its exploration momentum, with our primary focus remaining on the Melba project. We appreciate the continued support of both new and existing stakeholders and look forward to completing the final tranche in short order," commented Peter Schloo, president, chief executive officer and director.