Ascendant Resources closes final non-brokerage tranche
- The company acquired a 50% stake in the Lagoa Salgada VMS project, Portugal
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TORONTO, May 26, 2022 (GLOBE NEWSWIRE) — Ascending Resources Inc. (TSX: ASND) (“Ascendant” or the “Company”) is pleased to announce the closing of the second and final tranche (the “Second Tranche”) of its non-brokered private placement of common shares of the Company ( the “Offer”). The placement consisted of the issuance by the Company of 17,560,000 common shares at a price of $0.20 per common share (the “offer price”) for gross proceeds of C$3,512,000.
In the second tranche closed today, the Company issued 3,143,107 common shares at the offering price for aggregate proceeds of C$628,621.40. This is in addition to the closing of the first tranche of the Offering (the “First Tranche”), details of which were disclosed in the Company’s press release dated May 20, 2022.
The Company intends to use the net proceeds of the Offering to advance the Lagoa Salgada project as well as for working capital and general corporate purposes.
In connection with the Offer, the Company paid certain independent intermediaries cash commissions in the aggregate amount of C$28,000.
Securities issued under the Offering to persons subject to Canadian securities laws are subject to a hold period of four months and one day in accordance with applicable securities legislation. Certain other securities have been issued to persons in foreign jurisdictions pursuant to Ontario Securities Commission Rule 72-503 – Distributions Outside Canada and these securities are not subject to a legal holding period.
Insiders did not participate in the second tranche but, as previously reported, insiders of the Company subscribed for a total of 9,766,893 common shares in the first tranche at the offering price for aggregate gross proceeds of 1,953,378 $.60. Insider participation in the Offer constitutes a related party transaction within the meaning of NI 61-101 – Protection of holders of minority securities in special transactions (“MI 61-101”). The Company relies on the exemptions from the formal valuation and minority shareholder approval requirements provided for in Sections 5.5(a) and 5.7(1)(a) of 61-101, as the fair market value of securities issued to such insiders does not exceed 25% of the market capitalization of the Company. The Company did not file a material change report 21 days prior to the closing of the First Tranche as the details of the Offer and the participation of insiders of the Company had not been confirmed at that time.
About Ascendant Resources Inc.
Ascendant is a Toronto-based mining company focused on the exploration and development of the highly prospective VMS Lagoa Salgada project located on the prolific Iberian Pyrite Belt in Portugal. Through focused exploration and aggressive development plans, the Company aims to unlock the inherent potential of the project, maximizing shareholder value creation.
The Venda Nova deposit at Lagoa Salgada contains over 10.33 million tonnes of measured and indicated resources at 9.06% ZnEq and 2.50 million tonnes of inferred resources at 5.93% ZnEq in the North Zone; and 4.42 million tonnes of indicated resources @ 1.50% CuEq and 10.83 million tonnes of inferred resources @ 1.35% CuEq in the South Zone. The deposit exhibits mineralization characteristics typical of VMS deposits of the Iberian pyrite belt containing zinc, copper, lead, tin, silver and gold. Extensive exploration potential lies both near the deposit and at potential exit targets within the large property concession of 10,700 ha. The project also demonstrates compelling economics with scalability for future resource growth in the Preliminary Economic Assessment results. Located just 80 km from Lisbon, Lagoa Salgada is easily accessible by road and surrounded by exceptional infrastructure. Ascendant holds a 50% interest in the Lagoa Salgada project through its position in Redcorp – Empreendimentos Mineiros, Lda, (“Redcorp”) and has an opportunity to increase its interest in the project to 80%. The Company’s interest in the Lagoa Salgada project provides a low-cost entry to a potentially large exploration and development opportunity, already demonstrating its exploitable scale.
The Company’s common shares are primarily listed on the Toronto Stock Exchange under the symbol “ASND”. For more information about Ascendant, please visit our website at www.ascendantresources.com.
Additional information regarding the Company, including the preliminary economic assessment referred to in this press release, is available on SEDAR at www.sedar.com.
Neither the Toronto Stock Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX) accepts responsibility for the adequacy or accuracy of this release.
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This press release contains “forward-looking statements” and “forward-looking information” (collectively, “forward-looking information”) within the meaning of applicable Canadian securities laws. All information contained in this press release, other than statements of current and historical facts, is forward-looking information. Often, but not always, forward-looking information can be identified by the use of words such as “plans”, “expects”, “budget”, “directions”, “expected”, “estimates”, “forecasts”, “strategy “, “target”, “intends”, “goal”, “aim”, “includes”, “anticipates” and “believes” (and variations of these or similar words) and statements that certain actions, events or results “may”, “could”, “should”, “should”, “could” “occur” or “be achieved” or “will be taken” (and variations of these or similar expressions ). Forward-looking information is also identifiable in statements of ongoing matters that may continue in the future, such as “providing to the company”, “is currently”, “allows/allows”, “will move forward”, or “continues to ” or other statements that may be made in the present tense with future implications. All forward-looking information contained in this press release is qualified by this cautionary statement.
Forward-looking information in this press release includes, but is not limited to, statements regarding the offering, including the company’s intended use of proceeds, exploration activities and the results of such activities at the project. Lagoa Salgada, the Company’s ability to advance the feasibility of the Lagoa Salgada Project and the Company’s ability to finance exploration with funds generated from operations. Forward-looking information is based on, among other things, opinions, assumptions, estimates and analyzes which, although believed to be reasonable by Ascendant on the date the forward-looking information is provided, are inherently subject to risks, uncertainties, contingencies and other important factors. which may cause actual results and events to differ materially from those expressed or implied by the forward-looking information. Important factors or assumptions that Ascendant has identified and have been applied by Ascendant in drawing conclusions or making any forecasts or projections set forth in the forward-looking information include, but are not limited to, the success of the exploration activities of the project Lagoa Salgada, the Company advancing the project to a preliminary economic assessment, the Company’s ability to fund the exploration program at Lagoa Salgada with funds from operations and other events that may affect the ability of Ascendant to develop its project; and no material and continuing adverse change in general economic or financial market conditions.