Sun Peak Metals announces $5 million private placement offering

Sun Peak Metals Corp. (TSXV: PEAK) announced a non-brokered private placement offering of up to 14,285,714 subscription receipts at $0.35 per receipt for aggregate gross proceeds of up to $5 million.

The offering connects to the company's previously announced business combination with Saudi Discovery Company SPV Limited. Net proceeds are expected to fund property advancement and working capital.

Each subscription receipt will automatically convert into one unit of a wholly owned subsidiary upon satisfaction of escrow release conditions. Each unit consists of one common share and one-half warrant, with warrants exercisable at $0.50 per share for 36 months.

The gross proceeds will be held in escrow pending completion of the business combination and receipt of required shareholder and regulatory approvals. If conditions are not met within 90 days of closing or if the transaction is terminated, subscription receipts will be cancelled and funds returned to holders.

Following the offering, the subsidiary is expected to amalgamate with another Sun Peak subsidiary. Upon completion of the transaction, the entities are expected to amalgamate under the name Sun Peak Metals Corp.

The warrants will include an accelerated expiry provision that triggers if Sun Peak's volume-weighted average share price on the TSX Venture Exchange equals or exceeds $1.00 for 20 consecutive trading days.

Sun Peak may increase the private placement by 50% and may pay finder's fees in accordance with applicable securities laws and TSXV policies.

Sun Peak operates the Shire VMS Project in Ethiopia's Tigray Region, covering six exploration licenses totaling approximately 1,450 square kilometers. Saudi Discovery Company advances mineral projects in Saudi Arabia.

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