Toronto, Ontario--(Newsfile Corp. - August 21, 2020) - Stratabound Minerals Corp. (TSXV: SB) ("Stratabound" or the "Company") announced the closing on August 21, 2020 of the first tranche of $1,194,990 (5,974,950 units) of its non-brokered private placement ("Private Placement") announced on August 10, 2020. Each unit consists of one common share and one half of a warrant. Each whole warrant entitles the holder to purchase one additional common share at $0.30 for a period of two years from the date of closing. The warrant also contains an acceleration clause wherein if the common shares trade at $0.40 for 10 days the Company has the right to accelerate the expiration date upon 30 days' notice.
The Company paid finders' fees to one finder consisting of $4,500 and 22,500 broker warrants. Securities issued pursuant to this tranche are subject to trading restrictions until December 22, 2020.
An insider of the Company subscribed for an aggregate of 5,000,000 common shares of the Company. The Company has relied on the exemptions from the valuation and minority shareholder approval requirements of MI 61-101 contained in sections 5.5(b) and 5.7(a) of MI 61-101 in respect of such insider participation.
Proceeds will be used for exploration expenses, related holding costs to maintain the respective exploration properties, and for general corporate working capital purposes.
The Company also announced it has completed the first tranche of $115,000 (460,000 units) of its non-brokered Flow-Through Unit private placement. Each Flow-Through Unit is comprised of one common share and one-half of a warrant and is issued on a flow-through basis for Canadian tax purposes. One whole warrant will entitle the holder thereof to purchase one non flow-through common share at $0.35 for a period of 2 years from the date of issue. The warrant also contains an acceleration clause wherein if the common shares trade at $0.45 for 10 days the Company has the right to accelerate the expiration date upon 30 days' notice.
The Company paid finders' fees in respect to the Flow-Through Units to one finder consisting of $3,000 and 12,000 broker warrants. Securities issued pursuant to this tranche are subject to trading restrictions until December 22, 2020.
Proceeds will be used for qualifying exploration expenditures of the Company in relation to the Golden Culvert and Little Hyland properties in the Yukon Territory, the McIntyre Brook and Captain properties in New Brunswick.
About Stratabound Minerals Corp.
Stratabound Minerals Corp. is a Canadian exploration and development company focused on gold exploration at its flagship Golden Culvert Project, Yukon Territory and its new McIntyre Brook Project, New Brunswick, Canada. The Company also holds a significant land position that hosts three base metals deposits in the Bathurst base metals camp of New Brunswick featuring the Captain Copper-Cobalt-Gold Deposit that hosts an NI 43-101 Measured and Indicated Resource.
For more information please visit the company's website at .
For further information contact: R. Kim Tyler, President and CEO 416-915-4157
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