Metals Creek Resources Corp. (TSXV: MEK) has announced it has filed documents with the TSX Venture Exchange seeking final approval to close a non-brokered flow-through private placement targeting aggregate proceeds of $800,020. The financing will fund exploration on the company's Ontario properties, including its Ogden Gold Project near Timmins. The announcement is of immediate relevance to investors tracking junior gold explorers seeking tax-advantaged Canadian flow-through share structures.

Key Points

  • Metals Creek Resources Corp. (TSXV: MEK | OTC Pink: MCREF | FSE: M1C1)
  • The company has filed for TSX Venture Exchange approval to close an $800,020 non-brokered flow-through private placement
  • 20,000,500 flow-through shares priced at $0.04 each; finders' fees of $56,001.40 cash and 1,400,035 broker warrants at $0.05, exercisable for 24 months
  • Investors may be watching for TSX Venture Exchange approval and subsequent deployment of proceeds toward Ogden Gold Project exploration

Structure of the $800,020 Flow-Through Financing

Upon receiving TSX Venture Exchange approval, Metals Creek will issue 20,000,500 flow-through common shares at $0.04 per share, generating aggregate proceeds of $800,020. The shares carry tax benefits applicable to flow-through instruments under the Income Tax Act (Canada). All securities issued pursuant to the placement will be subject to a standard four-month hold period. The company has also agreed to pay $56,001.40 in cash finders' fees and issue 1,400,035 non-transferable broker warrants exercisable at $0.05 per share for a period of 24 months from the date of issue.

Proceeds Directed to Ogden Gold Project Exploration in Ontario

The release states that proceeds raised will be directed toward exploration on the company's Ontario properties, with specific mention of the Ogden Gold Project. The company intends that expenditures qualify as Canadian Exploration Expenses and as a "flow-through mining expenditure" under the Income Tax Act (Canada). Metals Creek holds a 50% interest in the Ogden Gold Property, which includes the past-producing Naybob Gold mine located approximately six kilometres south of Timmins, Ontario, along an eight-kilometre strike length of the Porcupine-Destor Fault.

Placement Remains Conditional on Regulatory Approval

The private placement has not yet closed and remains subject to final approval by the TSX Venture Exchange, as stated in the announcement. Metals Creek has not disclosed a targeted closing date for the financing. Investors should note the transaction is non-brokered and the company has not indicated whether the placement is fully subscribed. The immediate share price impact was not clear from available public information. Metals Creek is a Thunder Bay, Ontario-based junior exploration company listed on the TSX Venture Exchange, OTC Pink markets, and Frankfurt Stock Exchange.