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SERVICES OR DISSEMINATION IN THE UNITED
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CALGARY, June 27, 2018 /CNW/ - Yellowhead Mining Inc.
("Yellowhead" or the "Company") (TSX-V: YMI) announces that its
board of directors, subject to regulatory and legal approvals, has
approved a rights offering to its shareholders to provide working
capital and to repay certain payables.
Rights Offering
Yellowhead will be offering rights (the "Rights") to
holders of its common shares at the close of business on the record
date of July 5, 2018 (the "Record
Date"), on the basis of 0.85 of a right for each common share
held (the "Rights Offering"). Each whole right will
entitle the holder to subscribe for one common share of Yellowhead
upon payment of the subscription price of C$0.12 per common share. There are
currently 10,313,088 common shares of the Company issued and
outstanding. If all the rights issued under the rights
offering are validly exercised, the Rights Offering will raise
gross proceeds of approximately C$1,051,935.
Shareholders who fully exercise their Rights will also be
entitled to subscribe for additional shares in the Rights Offering,
if available as a result of unexercised Rights prior to the Expiry
Time, subject to certain limitations set out in Yellowhead's rights
offering circular.
The Rights will trade on the TSX Venture Exchange under the
symbol YMI.RT commencing on July 5,
2018 and until 9:00 a.m.
(Vancouver time) on August
1, 2018. The Rights will expire at 2:00
p.m. (Vancouver time) on
August 1, 2018 (the "Expiry Time"), after which time
unexercised Rights will be void and of no value. No fractional
shares will be issued.
Matco Investments Ltd. ("Matco), a company controlled by
a director of the Company, has given a written commitment to
exercise its rights for proceeds of approximately $406,695. In addition, T. Gregory Hawkins ("Hawkins"), another
director of the Company, has also provided a written commitment to
exercise his rights for proceeds of approximately $75,840. Matco and Hawkins may also elect to
exercise their additional subscription privilege and acquire
Additional Common Shares. As of the date hereof, the Company is not
aware if the Committed Purchasers have made such a decision.
The rights will expire at 2:00
p.m. (Vancouver Time) on August 1,
2018, after which time unexercised rights will be void and
of no value. Shareholders who fully exercise their rights
will be entitled to subscribe for additional common shares, if
available as a result of unexercised rights prior to the Expiry
Time, subject to certain limitations as set out in the Company's
rights offering circular. The Company expects to close the
Rights Offering on or about August 2,
2018.
Details of the Rights Offering will be set out in the rights
offering notice and rights offering circular which will be
available under Yellowhead's profile at www.SEDAR.com. The
Rights Offering notice and accompanying Rights certificate will be
mailed to each registered eligible shareholder as at the Record
Date. Registered shareholders who wish to exercise their
rights must forward the completed rights certificate, together with
the applicable funds, to the rights agent, Computershare Investor
Services, Inc. ("Computershare"), on or before the Expiry
Time. Shareholders who own their common shares through an
intermediary, such as a bank, trust company, securities dealer or
broker, will receive materials and instructions from their
intermediary.
The Rights Offering will be conducted in Canada only.
Funds raised through the Rights Offering will be first used to
pay for outstanding payables, being approximately $536,100 as of the date hereof. Any remaining
funds will be used for general and administrative expenses.
About Yellowhead Mining Inc.
Yellowhead Mining Inc. is a development stage company with a
100% interest in Harper Creek,
located in the North Thompson -
Nicola region of British Columbia,
Canada.
About the Harper Creek Project
Harper Creek is a proposed 70,000
tonnes-per-day open pit copper mine with a 28 year mine life,
located in the Thompson – Nicola
region of British Columbia near
Vavenby. If developed, Harper
Creek would provide up to 600 jobs during construction and
up to 450 permanent jobs during operations.
Forward Looking Statements
Except for statements of historical fact, this news release
contains certain "forward-looking information" within the meaning
of applicable securities laws. Forward-looking information is
frequently characterized by words such as "plan", "expect",
"project", "intend", "believe", "anticipate", "estimate" and other
similar words, or statements that certain events or conditions
"may" or "will" occur. Forward-looking statements are based on the
opinions and estimates of management at the date the statements are
made, and are subject to a variety of risks and uncertainties and
other factors that could cause actual events or results to differ
materially from those anticipated in the forward-looking
statements, including, among others, details of the Rights
Offering, the intended use of proceeds of the Rights Offering, and
expected outcomes, that the Rights Offering will otherwise not be
completed or will raise less than the expected proceeds;
uncertainties as to the costs to completion of the rights offering,
the accuracy of mineral grades and related assumptions, inherent
operating risks, planned expenditures, proposed exploration and
development at the Harper Creek Project, operating and economic
aspects of the Harper Creek Project, as well as those risk factors
identified in the Company's Annual Information Form filed under the
Company's SEDAR profile. Yellowhead undertakes no obligation to
update forward-looking information if circumstances or management's
estimates or opinions should change except as required by law. The
reader is cautioned not to place undue reliance on forward-looking
statements. More detailed information about potential factors that
could affect projected results is included in the documents filed
from time to time with the Canadian securities regulatory
authorities by Yellowhead.
SOURCE Yellowhead Mining Inc.