Medaro Mining closes $523,990 private placement

Executive Summary

• Medaro Mining Corp. has closed its LIFE (Listed Issuer Financing Exemption) private placement offering, raising approximately $524,000 in gross proceeds.
• The company issued 3,742,786 units at $0.14 per unit, with each unit comprising one common share and one common share purchase warrant.
• A portion of the net proceeds ($35,000) was immediately used to settle a debt owed to Treewalk Ventures Inc., a related party controlled by the company's CFO, constituting a related party transaction.

Key Details

• Offering Structure: Closed LIFE private placement offering.
• Units Issued: 3,742,786 units.
• Price: $0.14 per unit.
• Gross Proceeds: Approximately $523,990.04.
• Warrant Terms: Each unit includes one common share purchase warrant.
  • Exercise Price: $0.17 per share.
  • Term: 24 months from issuance.
  • Hold Period: Warrants cannot be exercised for 60 days from issuance.
  • Hold Period for Units: No hold period applies under Canadian securities laws due to the LIFE exemption.
• Finder’s Fees:
  • Research Capital Corp. (RCC): $2,940 in cash fees and 21,000 finder warrants.
  • Ventum Financial Corp.: $3,430 in cash fees and 24,500 finder warrants.
• Use of Proceeds & Related Party Transaction:
  • Debt Settlement: $35,000 paid to Treewalk Ventures Inc. (controlled by CFO Alexander McAulay) to partially settle an outstanding bona fide debt.
  • Treewalk Participation: Treewalk acquired 250,000 shares in the offering.
  • Exemptions: Relied on exemptions from formal valuation (MI 61-101 Section 5.5(b)) and minority approval (MI 61-101 Section 5.7(1)(a)) as the transaction value did not exceed 25% of market capitalization.
  • Net Proceeds: Approximately $482,620.04 after fees and debt settlement.
  • Allocation: Advancing exploration at Pontax and Cyr South lithium properties, general corporate purposes, and administrative expenses.

Notable Quotes

• None provided in the text.