Sun Peak Metals plans $5M private placement for exploration

Sun Peak Metals Corp. (TSXV: PEAK)(OTCQB: SUNPF) announced a non-brokered private placement offering of up to $5,000,000 through the issuance of up to 12,500,000 units priced at $0.40 per unit.

Each unit consists of one common share and one-half of one common share purchase warrant. Each whole warrant entitles the holder to purchase one common share at $0.55 per share for a period of two years from the closing of the offering.

The warrants include an accelerated expiry provision. If the volume-weighted average price of the company's common shares on the TSX Venture Exchange equals or exceeds $1.10 for 10 consecutive trading days, the warrants will expire 30 days after the company provides notice of acceleration or issues a news release announcing the acceleration.

According to the press release, net proceeds will be directed toward exploration on the company's projects in Saudi Arabia and Ethiopia, offering costs, and general working capital.

Securities issued under the offering will be subject to a four-month and one-day hold period. The offering remains subject to regulatory approvals, including approval from the TSX Venture Exchange. Finder's fees may be payable, with terms to be disclosed at a later date if applicable.

Sun Peak holds 13 exploration licenses covering 1,072 km² in Saudi Arabia and six exploration licenses covering approximately 1,450 km² in Ethiopia.

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