FALCO ANNOUNCES CLOSING OF BROKERED PRIVATE PLACEMENT

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TSXV - FPC

MONTRÉAL, Dec. 20, 2024 /CNW/ - Falco Resources Ltd. (TSXV: FPC) ("Falco" or the "Corporation") is pleased to announce the closing of its previously announced "best efforts" brokered private placement (the "Offering") with Cantor Fitzgerald Canada Corporation, acting as sole agent and sole bookrunner (the "Agent"). Pursuant to the Offering, Falco has issued an aggregate of 24,000,000 units of the Corporation (the "Units") at a price of C$0.25 per Unit, for aggregate gross proceeds of C$6,000,000.

Each Unit consists of one common share (each, a "Common Share") of the Corporation and one common share purchase warrant (each, a "Warrant"). Each Warrant is exercisable to acquire one Common Share at a price of C$0.35 at any time on or before that date which is 60 months after the closing date of the Offering.

The Corporation intends to use the net proceeds from the sale of Units for the advancement of the Horne 5 Project and for working capital and general corporate purposes.

In connection with the closing of the Offering, the Corporation paid the Agent a cash commission totaling C$324,000 and has issued the Agent 1,152,000 non-transferrable compensation warrants (each, a "Broker Warrant"). Each Broker Warrant entitles the Agent to purchase one Common Share of the Corporation at an exercise price of C$0.25 per Broker Warrant at any time for a term of 24 months following the date of issuance.

All Common Shares and Warrants issued pursuant to the Offering are subject to a hold period of four months plus one day from the date of issuance of such securities under applicable securities laws in Canada.

A related party of the Corporation subscribed for 1,790,000 Units under the Offering. A transaction with a related party of the Corporation constitutes a "related party transaction" within the meaning of Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions ("MI 61-101"). The Corporation is relying on exemptions from the formal valuation requirements of MI 61-101 pursuant to section 5.5(a) and the minority shareholder approval requirements of MI 61-101 pursuant to section 5.7(1)(a) in respect of such related party participation as the fair market value of the transaction, insofar as it involves interested parties, does not exceed 25% of the Corporation's market capitalization. The Corporation did not file a material change report 21 days prior to closing of the Offering, as the related party's participation had not been confirmed at that time and the Company wished to close the transaction as soon as practicable for sound business reasons.