Palladium One Announces Closing of Oversubscribed Private Placement
December 2, 2019 – Vancouver, British Columbia – Palladium One Mining Inc. (TSX-V: PDM, FRA: 7N11) (the "Company" or “Palladium One”) is pleased to announce that it has closed its previously announced, oversubscribed, non-brokered private placement for gross proceeds of $3,786,180 (the “Offering”) (see press release dated November 22, 2019).
The Company has issued 63,102,999 Units at a price of $0.06 per Unit through the Offering. Each Unit is comprised of one common share in the capital of the Company (a “Common Share”) one-half of one non-transferable Common Share purchase warrant (each whole warrant, a “Warrant”), and one-quarter of one non-transferable Common Share purchase warrant (each whole Common Share purchase warrant, a “Bonus Warrant”). The Warrants and Bonus Warrants are subject to acceleration and customary capital adjustments.
Eric Sprott through 2176423 Ontario Ltd., a corporation that is beneficially owned by him, acquired 20,000,000 Units under the Offering for a total consideration of $1,200,000. Prior to the Offering, Mr. Sprott owned and controlled 1,300,000 Common Shares and 1,300,000 Common Share purchase warrants representing 2.9 % of the issued and outstanding Common Shares on a non-diluted basis and 5.7 % on a partially diluted basis. As a result of the Offering, Mr. Sprott beneficially owns and controls 21,300,000 Common Shares and 16,300,000 Common Share purchase warrants representing 19.4 % of the issued and outstanding common shares of the Company on a non-diluted basis and 29.8 % on a partially diluted basis assuming the exercise of all such warrants. Also, 2176423 Ontario Ltd. has entered into an undertaking with the TSX Venture Exchange to not acquire any additional Common Shares (including through the exercise of warrants) which would result in it owning 20% or more of the Shares of the Company, unless the Company has obtained necessary shareholder approval in accordance with the policies of the exchange. This undertaking was provided on the basis that at the next annual and/or special meeting of shareholders, the Company will seek to obtain such requisite shareholder approval, including the creation of a new “Control Person”.
The Units were acquired by Mr. Sprott, through 2176423 Ontario Ltd., for investment purposes. Mr. Sprott may acquire additional securities of Palladium One Mining including on the open market or through private acquisitions or he may sell securities of the Company including on the open market or through private dispositions in the future, depending on market conditions, reformulation of plans and/or other factors that Mr. Sprott considers relevant from time to time.
A copy of 2176423 Ontario Ltd.’s related early warning report will appear on the Company's profile on SEDAR (www.sedar.com) and may also be obtained by calling Mr. Sprott’s office at (416) 945-3294 (200 Bay Street, Suite 2600, Royal Bank Plaza, South Tower, Toronto, Ontario M5J 2J1).
The net proceeds from the Offering are intended to be used by the Company primarily for exploration activities on its palladium dominant, LK Project in Central Finland, its Tyco Sulphide Nickel Project in Ontario, Canada and for general, corporate and administrative purposes.
In connection with the closing of the placement the Company paid finders’ fees totaling $59,652.60, 2,487,000 Units and 91,000 Warrants to finders including but not limited to Mackie Research Capital Corp, PI Financial Corp., Haywood Securities Inc., Canaccord Genuity Corp., Richardson GMP Limited and IBK Capital Corp. who introduced subscribers to the Offering.
All securities issued in connection with the Offering are subject to a four-month-and-one-day statutory hold period from the date of issue, expiring on April 3, 2020
About Palladium One
Palladium One Mining Inc. is a PGE, nickel, copper exploration and development company. Its assets consist of the palladium dominant, Läntinen Koillismaa (“LK”) PGE-Cu-Ni project, located in north-central Finland and the Tyko Ni-Cu-PGE property, near Marathon, Ontario, Canada.
The LK Project: The Kaukua deposit of the LK project hosts 635,600 Pd_Eq ounces of Indicated Resources grading 1.80 g/t Pd_Eq* (“palladium equivalent”) contained in 11 million tonnes (@ 0.81g/t Pd, 0.27g/t Pt, 0.09g/t Au, (1.17g/t PGE), 0.15% Cu & 0.09% Ni), and 525,800 Pd_Eq ounces of Inferred Resources grading 1.50 g/t Pd_Eq contained in 11 million tonnes (@ 0.64g/t Pd, 0.20g/t Pt, 0.08g/t Au (0.92g/t PGE), 0.13% Cu, & 0.08% Ni), (see press release September 9, 2019). Kaukua is open for expansion, while the Kaukua South, Murtolampi and Haukiaho mineralized zones require systematic exploration via diamond drilling to follow up mineralized drill intercepts.
*Pd_Eq is calculated using the following metal prices (in USD) of $1,100/oz for Pd, $950/oz for Pt, $1,300/oz for Au, $6,614/t for Cu and $15,432/t for Ni.
The Tyko Project, Ontario, Canada: The Tyko Ni-Cu-PGE project, is an early stage, high sulphide tenor, nickel focused project with recent drill hole intercepts returning up to 1.06 Ni over 6.22 m including 4.71% Ni over 0.87m in hole TK-16-010 (see press release dated June 8, 2016).
The technical information in this release has been reviewed and verified by Neil Pettigrew, M.Sc., P. Geo, Vice President of Exploration and a director of the Company and the Qualified Person as defined by National Instrument 43-101.
ON BEHALF OF THE BOARD
President & CEO, Director
For further information contact:
Derrick Weyrauch, President & CEO
Neither the TSX Venture Exchange nor its Market Regulator (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This press release is not an offer or a solicitation of an offer of securities for sale in the United States of America. The common shares of Palladium One Mining Inc. have not been and will not be registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from registration.
Information set forth in this press release may contain forward-looking statements. Forward-looking statements are statements that relate to future, not past events. In this context, forward-looking statements often address a company's expected future business and financial performance, and often contain words such as "anticipate", "believe", "plan", "estimate", "expect", and "intend", statements that an action or event "may", "might", "could", "should", or "will" be taken or occur, or other similar expressions. By their nature, forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements, or other future events, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, risks associated with project development; the need for additional financing; operational risks associated with mining and mineral processing; fluctuations in gold and other commodity prices; title matters; 6 environmental liability claims and insurance; reliance on key personnel; the absence of dividends; competition; dilution; the volatility of our common share price and volume; and tax consequences to U.S. Shareholders. Forward-looking statements are made based on management's beliefs, estimates and opinions on the date that statements are made and the Company undertakes no obligation to update forward-looking statements if these beliefs, estimates and opinions or other circumstances should change. Investors are cautioned against attributing undue certainty to forward-looking statements.