CALGARY, AB, Aug. 29, 2024 /CNW/ - Fiddlehead Resources Corp. ("Fiddlehead" or the "Company") is pleased to announce the completion of the previously announced acquisition ("Acquisition") of the South Ferrier, Strachan area assets ("Assets") in Alberta from a senior Canadian producer ("Vendor"). In addition, the Company announces the closing of the previously announced underwritten private placement of subscription receipts at a price of $0.20 per subscription receipt for aggregate gross proceeds of $10.2 million ("Offering") and a secured credit facility with a private lender for $13.0 million (the "Credit Facility", together with the Offering, the "Financings").
The total cash purchase price of the Acquisition of approximately $18.8 million at closing (the "Purchase Price") was funded by the net proceeds of the Offering, led by Research Capital Corporation as the sole underwriter and sole bookrunner (the "Underwriter"), and the Credit Facility. In addition to the Purchase Price, the Company shall pay to the Vendor an additional $1.25 million in cash by December 31, 2025.
In connection with the completion of the Acquisition and the Financings, 1487477 B.C. Ltd, a wholly owned subsidiary of Fiddlehead ("FinanceCo") and 1487448 B.C. Ltd. amalgamated such that all the outstanding FinanceCo securities were exchanged for Fiddlehead securities on equivalent terms. The common shares of Fiddlehead ("Fiddlehead Shares") and the Fiddlehead Warrants (as defined herein) have been conditionally approved for listing (the "Listing") and are expected to be listed on the TSX Venture Exchange ("TSXV") shortly.
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