Tarku Resources closes $ 486,998 private placement financing
SASKATOON, SASKATCHEWAN- July 26, 2017 - Tarku Resources Ltd. (TSX VENTURE:TKU) (the "Company" or "Tarku") announces that it closed on July 26, 2017 the first tranche of a non-brokered private placement (the "Private Placement") for aggregate gross proceeds of $486,997.94. The Private Placement was comprised of 6,533,299 non-flow through units of the Company at a price of $0.06 per unit ($391,997.94) and 1,187,500 Flow-Through Shares of the Company at a price of $0.08 per share ($95,000). Each non-flow through unit (a "Unit") consists of one common share in the capital of the Company and one-half of one common share purchase warrant (a "Warrant"). Each Warrant entitles the holder to acquire one common share at a price of $0.10 per common share for a period of thirty six (36) months ending July 26, 2020. The securities issued under this Private Placement are subject to a statutory four (4) month hold period ending November 27, 2017. Tarku expects to hold additional closings of the Private Placement until September 11, 2017, subject to an aggregate maximum of $1.3 million.
The Société de Développement de la Baie-James ("SDBJ"), the Capital croissance PME II, s.e.c. ("CCPME II") and the Société d'investissement dans la diversification de l'exploration, s.e.c. ("SIDEX"), participated in the Private Placement. SDBJ, created in 1971 with the mission to promote the James Bay territory's economic development and the development and use of its natural resources subscribed for 2,083,333 units for gross proceeds of $125,000. CCPME II, managed by Desjardins Business Capital regional, is an investment fund with the primary mission of providing patient capital to Québec SMEs to carry out a variety of expansion projects, subscribed for 1,700,000 units for gross proceeds of $102,000. SIDEX, established in 2001 by the Government of Québec and the Fonds de solidarité des travailleurs du Québec (F.T.Q.) with the mission to invest in mineral exploration companies working in Québec to diversify Québec's mineral base, subscribed for 1,666,667 units for gross proceeds of $100,000 under its "Field Action 2017" program.
Julien Davy, President of Tarku, declared that: "Tarku is very happy to have the SDBJ, CCPME and SIDEX as important shareholders of the Company. Their notoriety in the Quebec mining industry and their competence is unquestioned and we are very proud to partner with them in our development. Tarku is also happy to have the Cree as shareholder supporting our projects in the Eeyou Istchee Territory".
The net proceeds of the Private Placement will be used to fund the Company's precious metals exploration projects (Chateau Fort, Richardson, Bullion, Atlas Apollo, Berthiaume and Admiral) and for general working capital purposes. The Private Placement has been conditionally accepted by the TSX Venture Exchange.
No finder's fee has been paid for this first tranche of the Private Placement. The Company may however for future closings pay to certain finders a finder's fee of up to 7% in cash and up to 7% in warrants, each warrant entitles the holder to acquire one common share at a price of $0.10 per common share for a period of twenty four (24) months after the closing date.
About Tarku Resources Ltd.
Tarku Resources Ltd. 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. Tarku holds 100% of the interests in all its projects. Project generation is the foundation of mining development and the vision of Tarku is to generate exploration projects with excellent potential for partners or buyers to build into mining properties. The foundation of the Company is based on an experienced management team with a track record of success. The goal of Tarku is to provide success for its shareholders through the implementation of strategic property acquisition, the use of innovative exploration techniques and the exploration of fertile ground. Management cautions that past results or discoveries on proximate land are not necessarily indicative of the results that may be achieved on the Company's properties.
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 news release contains forward-looking statements regarding our intentions and plans. The forward-looking statements that are contained in this news release are based on various assumptions and estimates by the Company and involve a number of risks and uncertainties. As a consequence, actual results may differ materially from results forecasted or suggested in these forward-looking statements and readers should not place undue reliance on forward-looking statements. We caution you that such forward-looking statements involve known and unknown risks and uncertainties, as discussed in the Company's filings with Canadian securities agencies. Various factors may prevent or delay our plans, including but not limited to, contractor availability and performance, weather, access, mineral prices, success and failure of the exploration and development carried out at various stages of the program, and general business, economic, competitive, political and social conditions. The Company expressly disclaims any obligation to update any forward- looking statements, except as required by applicable securities laws.