Heritage Mining closes $500K first tranche of placement

Executive Summary

• Heritage Mining Ltd. has closed the first tranche of a non-brokered private placement of units and flow-through units, raising gross proceeds of $500,000.99.
• The transaction involved the issuance of 2 million regular units and approximately 16.07 million flow-through units, with proceeds designated for exploration expenses, drilling programs at the Drayton-Black Lake and Contact Bay projects, and general working capital.
• The company paid finders' fees consisting of cash and compensation warrants, and the securities are subject to a four-month hold period.

Key Details

• Gross Proceeds: $500,000.99 total.
• Regular Units Issued: 2,000,000 units at $0.025 per unit.
• Regular Unit Proceeds: $50,000.00.
• Flow-Through (FT) Units Issued: 16,071,464 FT units at $0.028 per FT unit.
• FT Unit Proceeds: $450,000.99.
• Unit Structure: Each unit consists of one common share and one common share purchase warrant.
• FT Unit Structure: Each FT unit consists of one common share qualifying as a flow-through share under Subsection 66(15) of the Income Tax Act (Canada) and one warrant.
• Warrant Terms: Each warrant entitles the holder to acquire one common share at an exercise price of $0.05 per warrant share.
• Warrant Expiration: 60 months from the closing date of the offering.
• Use of Proceeds (FT Units): To incur eligible Canadian exploration expenses qualifying as flow-through mining expenditures and eligible for the Critical Mineral Exploration Tax Credit.
• Use of Proceeds (General): Financing planned exploration and drilling programs on the Drayton-Black Lake project and Contact Bay, plus general working capital.
• Hold Period: Four months under applicable securities laws.
• Finders' Fees: Paid to eligible finders consisting of $31,500.07 in cash and 1,125,003 compensation unit warrants.
• Compensation Warrant Terms: Each entitles the holder to acquire one common share and one warrant of the company at an exercise price of $0.05, exercisable for 60 months following the closing date.
• Additional Finder Compensation: A finder's fee equal to 1.0% cash compensation on units or FT shares issued pursuant to a president's list may be payable in accordance with Canadian Securities Exchange rules.

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.