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TORONTO, Dec. 19, 2024 (GLOBE NEWSWIRE) -- Euro Sun Mining Inc., (TSX: ESM) (“Euro Sun” or the “Company”) is pleased to announce that it has closed a second tranche (the “Second Tranche”) of its previously announced non-brokered private placement financing of units of the Company (the “Offering”). Pursuant to the closing of the Second Tranche, the Company issued 15,863,907 units of the Company (each a “Unit” and collectively, the “Units”) at a price of C$0.05 per Unit for gross proceeds of C$793,195.35. Each Unit consists of one common share of the Company (each, a “Common Share”) and one common share purchase warrant (each a “Warrant”). Each Warrant will entitle the holder to acquire one additional Common Share of the Company at an exercise price of C$0.05 per Common Share until two years from the issue date. No finder’s fees were paid in connection with closing of the Second Tranche.
Directors and officers of the Company purchased in aggregated 9,529,426 Units under the Second Tranche. Each placement to such persons constitutes a “related party transaction” within the meaning Multilateral Instrument 61‑101 ‑Protection of Minority Security Holders in Special Transactions (“MI 61‑101”). The Company has relied on exemptions from the formal valuation and minority shareholder approval requirements of MI 61‑101 contained in sections 5.5(a) and 5.7(1)(a) of MI 61‑101 in respect of related party participation in the placement as neither the fair market value (as determined under MI 61-101) of the subject matter of, nor the fair market value of the consideration for, the transaction, insofar as it involved the related parties, exceeded 25% of the Company’s market capitalization (as determined under MI 61-101). Further details will be included in a material change report to be filed by the Company. The material change report will not be filed more than 21 days prior to closing of the placement due to the timing of the announcement of the private placement and closing of the Offering.
Euro Sun intends to use the proceeds of the Offering for the advancement of its Rovina Valley Project and for general corporate purposes.
The securities issued under the Second Tranche are subject to a hold period that expires four months plus one day from the date of issuance. The Company has received conditional approval from the TSX to extend the closing date of the Offering until January 16, 2025.
About Euro Sun Mining Inc.
Euro Sun Mining is a publicly listed development-stage mining company focused on unlocking value through the responsible development of the Rovina Valley Project, one of Europe’s largest copper gold projects.