Tocvan Ventures Secures $5.125 Million to Advance Mexico Gold-Silver Projects
Calgary, Alberta -- June 30, 2022 -- NewsGenie -- Tocvan Ventures Corp. (CSE:TOC; OTC:TCVNF; WKN:TV3/A2PE64) has announced the closing of a $5.125 million (CAD) private placement with an institutional investor. The funds will be used to advance the Pilar and El Picacho Au-Ag projects in Sonora, Mexico, and for general working capital.
The placement involves a series of agreements with Sorbie Bornholm LP, a UK-based institutional investor. Tocvan will issue 3,200,000 units, each consisting of one common share at $0.82 and one warrant, allowing the holder to purchase an additional common share at $1.20 for three years. Additionally, 2,501 convertible loan notes, each with a principal amount of $1,000 and bearing 1% interest, will be issued. Each note is convertible into 1,220 common shares for three years and includes detachable warrants to acquire up to 1,220 common shares per note.
CEO Brodie Sutherland stated, "We are very pleased to align with a strategic investor to support us through our next phase of growth and guarantee we are funded to develop our projects for the next two years and beyond."
To facilitate the fund delivery, Tocvan entered into a sharing agreement and an escrow agreement with Sorbie. This structure allows Tocvan to retain much of the economic interest in the Sorbie subscription shares and notes, securing potential upside on 4,659,091 of the Sorbie subscription shares.
The funds from the placement will be received over 24 months, based on a payment schedule detailed in the sharing agreement. This structure provides Tocvan with flexibility while maintaining a constant funding source.
Tocvan also announced that CFO Greg Ball will retire on July 1st but will remain a Director. Yana Silina, a Chartered Professional Accountant, will assume the CFO role.
Tocvan Ventures Corp. is focused on gold-silver exploration in Sonora, Mexico, with approximately 33 million shares outstanding and a 100% interest in the Pilar and El Picacho projects.
Cautionary Note: This release contains forward-looking statements regarding future activities and developments, which are subject to risks and uncertainties.
For more information, contact:
TOCVAN VENTURES CORP.
Brodie A. Sutherland, CEO
820-1130 West Pender St.
Vancouver, BC V6E 4A4
Telephone: 1 888 772 2452
Email: ir@tocvan.ca