New Break Resources Announces Non-Brokered Private Placement to Fund Exploration Activities

New Break Resources Ltd. (CSE: NBRK) has announced its intention to close a non-brokered private placement with a greater than 10% security holder on July 18, 2024. The offering will consist of the sale of 1,500,000 flow-through units (FT Units) at a price of $0.11 per FT Unit, resulting in gross proceeds of $165,000.

Each FT Unit will include one common share that qualifies as a ‘flow-through share’ and one common share purchase warrant. The warrants will entitle the holder to purchase one additional non-flow-through common share of the company at a price of $0.25 until July 18, 2029. The warrants also include an acceleration clause that allows the company to expedite their expiry if the closing price of the common shares reaches $0.40 or higher for five non-consecutive trading days over a 365-day period.

The gross proceeds from the sale of the FT Units will be used for Canadian Exploration Expenses (CEE) and will qualify as ‘flow-through mining expenditures’ as defined in the Income Tax Act (Canada). New Break Resources plans to utilize these funds to conduct an induced polarization (IP) survey over the entire interpreted extent of the syenite intrusive at its Moray property, located near Timmins, Ontario.

This private placement is subject to certain conditions, including regulatory approvals and final approval from the Canadian Securities Exchange (CSE). The securities issued will be subject to a statutory hold period of four months and one day.

The acquisition of the securities by the greater than 10% security holder, John Ross and Patricia Quigley, constitutes a ‘related party transaction.’ However, the company is relying on an exemption from the formal valuation and minority shareholder approval requirements.

New Break Resources is a Canadian mineral exploration company focused on its Moray Project in northern Ontario and prospective land holdings in Nunavut. The company aims to provide shareholders with exposure to the potential for exploration success in these regions. New Break Resources is committed to upholding Environmental, Social, and Corporate Governance principles.

For more information on New Break Resources and the private placement, please visit their website or contact Michael Farrant, President and CEO of New Break Resources Ltd.