MONTREAL, Nov. 01, 2018 (GLOBE NEWSWIRE) -- Tarku Resources Ltd. (TSX-V: TKU) (the "Company" or "Tarku") announces that it is undertaking non-brokered private placements of units and flow-through shares (collectively the "Offering"), which have been conditionally approved by the TSX-V, for a maximum of $300,000.
Pursuant to the placement of units, Tarku is offering a maximum of 7,500,000 units at a price of $0.02 per unit, for a maximum of $150,000. Each unit consists of one common share and one-half common share purchase warrant (a “Warrant”). Each Warrant entitles the holder to acquire one common share at a price of $0.05 per common share for a period of 18 months after the closing. The Warrants will contain an acceleration clause providing that if at any time after 4 months and 1 day following the closing, the trading price of the common shares on the TSXV is equal to or exceeds $0.07 for 20 consecutive trading days, Tarku shall be entitled to notify the holders of its intention to force the exercise of the Warrants.
Pursuant to the placement of flow-through shares, Tarku is offering a maximum of 5,000,000 flow-through shares at a price of $0.03 per share.
The Offering is open to all existing shareholders of Tarku in accordance with “Regulation 45-513 Respecting Prospectus Exemption for Distribution to Existing Security Holders” and other various corresponding blanket orders and rules of other Canadian jurisdictions that have adopted a similar exemption (collectively the " Holders’ Exemption"), and also to accredited investors and family, friends and business associates.
Existing shareholders of Tarku interested in participating in the Offering will receive preference over new subscribers. They should contact Tarku using the contact information set out below as soon as possible as the Offering shall be allocated on a "first come, first served" basis until the Offering is fully subscribed. The Offering is not subject to any minimum subscription. The Company may close the Offering in several tranches, the first of which it intends to close around November 15, 2018.
The Company will use the proceeds of the Offering for purposes of working capital and to maintain and preserve its existing operations, activities and assets and for exploration expenditures on its current properties.
The Shares and Warrants issued under the Offering will be subject to a hold period of 4 months and 1 day following the closing.
The Company has set October 31st, 2018 as the record date (the "Record Date") for the purpose of determining existing shareholders of Tarku entitled to participate in the Offering pursuant to the Holders’ Exemption. Any shareholder purchasing under the Holders’ Exemption will have to represent in writing that he held common shares of the Company as of the Record Date and continues to hold them. Also, the aggregate acquisition cost to a subscriber under the Holders’ Exemption cannot exceed $15,000, unless that subscriber has obtained advice regarding the suitability of the Offering and, if the subscriber is resident in a jurisdiction of Canada, such advice is obtained from a person that is registered as an investment dealer in the subscriber's jurisdiction.
About Tarku Resources Ltd. (TSX-V: TKU)
Tarku is an exploration company focused on generating sustainable projects for precious and base metals by conducting exploration in areas with strong geologic potential and high levels of social acceptability. Project generation is the foundation of mining development, and Tarku’s vision is to generate exploration projects with excellent potential for mining development for prospective partners or buyers.
For more information, please visit the Company’s web site: www.tarkuresources.com
Neither TSX Venture Exchange nor its Regulation Services Provider (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 may contain forward-looking statements that are subject to known and unknown risks and uncertainties that could cause actual results and activities to vary materially from targeted results and planning. Such risks and uncertainties include those described in Tarku’s periodic reports including the annual report or in the filings made by Tarku from time to time with securities regulatory authorities.