Surrey, British Columbia, March 9, 2022 - Sierra Grande Minerals Inc. (the “Company” or “Sierra”) (CSE: SGRO) (OTC: SIERF) (FF: F91Q) announces that it will conduct a non-brokered private placement of up to 13,333,000 units at a price of C$0.15 per unit (the “Unit”) to raise up to C$2,000,000 (the “Financing”). Each Unit will consist of one common share in the equity of the Company and one common share purchase warrant (the “Warrant”). Each Warrant entitles the holder to purchase one additional common share of the Company at a price of C$0.20 per common share for a period of three (3) years from the closing of the Financing. Warrants are subject to a C$0.05 increase in each of the second and third years of the Warrant term. Warrants are further subject to an acceleration clause, whereby after the first year of the Warrant term, if the common shares of Sierra trade at C$0.60 per common share or higher, the Company has the right to accelerate the Warrants for exercise within 30 days of an exercise notice.
The Company may pay a finder’s fee to qualified individuals in respect to the Financing. Securities issued as a result of the Financing will be subject to a one (1) year hold period. The net proceeds received by the company from the offering are expected to be used for general working capital purposes.
Should any directors or officers of the Company acquire Units under the Financing such participation is considered to be a related party transaction as defined under Multilateral Instrument 61-101 Protection of Minority Security Holders in Special Transactions (“MI 61-101”). The transaction will be exempt from the formal valuation and minority shareholder approval requirements of MI 61-101 if neither the fair market value of any securities issued to or the consideration paid by such persons will exceed 25% of the Company’s market capitalization.
Subject to customary closing conditions, including the approval of the Canadian Securities Exchange.
ON BEHALF OF THE BOARD
“Sonny Janda”
Sonny Janda, Director
For further information on the Company, please contact Sonny Janda, Director, Telephone: 604-357-3741 or at sonny.janda@sierragrowth.com
Neither the Canadian Securities Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this release.
This news release includes certain statements that constitute “forward-looking information” within the meaning of applicable securities law, including without limitation, statements that address the timing and content of certain agreements and development. Forward-looking statements address future events and conditions and are necessarily based upon a number of estimates and assumptions. While such estimates and assumptions are considered reasonable by the management of the Company, they are inherently subject to significant business, economic, competitive and regulatory uncertainties and risks, including the ability of the Company to raise the funds necessary to fund its projects and, accordingly, may not occur as described herein or at all. Actual results may differ materially from those currently anticipated in such statements. Factors that could cause actual results to differ materially from those in forward looking statements include Covid-19 restrictions, market prices, exploitation and exploration successes, the timing and receipt of government and regulatory approvals, and continued availability of capital and financing and general economic, market or business conditions. Readers are referred to the Company’s filings with the Canadian securities regulators for information on these and other risk factors, available at www.sedar.com. Investors are cautioned that forward-looking statements are not guarantees of future performance or events and, accordingly are cautioned not to put undue reliance on forward-looking statements due to the inherent uncertainty of such statements. The forward- looking statements included in this news release are made as of the date hereof and the Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by applicable securities legislation.”