In connection with plans to go public in the first half of 2022, New Break Resources Ltd. (“New Break” or the “Company”) intends to complete a non-brokered private placement offering of up to 4,000,000 units (“Units”) at a price of $0.25 per Unit, for gross proceeds of up to $1,000,000, with an over-allotment option of up to an additional $1,000,000.
Each Unit consists of one common share (a “Common Share”) of the Company and one common share purchase warrant (each whole warrant a “Warrant”), with each Warrant entitling the holder thereof, to purchase one additional Common Share of the Company at a price of $0.35 for a period of twenty-four (24) months following a Liquidity Event, defined as the completion of an event which results in the Common Shares of the Company freely tradable on a recognized public stock exchange. The Warrants are subject to an acceleration clause in the event the Common Shares become listed for trading on a stock exchange in Canada and the volume-weighted average trading price equals or exceeds $0.50 for a period of ten (10) consecutive trading days.
The proceeds from this Offering will be used for the following purposes:
- Exploration activities on the Company’s properties in Kivalliq Region, Nunavut, including:
- the Sundog Gold Project, held through a fully executed Inuit Owned Lands Mineral Exploration Agreement between the Company and Nunavut Tunngavik Incorported;
- the recently staked Esker claim, drilled by Comaplex Minerals Corp. in 1997, the results of which included 2.35 g/t Au over 70.95 metres (hole 97-13), 8.18 g/t Au over 13.27 metres (hole 97-15), 4.00 g/t Au over 5.57 metres (hole 97-16) and 7.24 g/t Au over 5.0 metres (hole 97-23), all at depths between 10 to 155 metres below surface.
- Corporate Development; and
- General working capital purposes.