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ROUYN-NORANDA, QC, Aug. 27, 2021 /CNW Telbec/ - X-Terra Resources
Inc. (TSXV: XTT) (FRANKFURT: XTR) ("X-Terra") is
pleased to announce the closing of a non-brokered private placement
at which it issued 11,716,670 units at a price of $0.075 per unit, for aggregate gross proceeds to
X-Terra of $878,750. Each of the
11,716,670 units is comprised of one common share and one common
share purchase warrant (the "Warrants"). Each Warrant entitles its
holder to acquire one additional common share of X-Terra at a price
of $0.11 for a period of
24 months from the closing date. In the event that the
closing price of the common shares of X-Terra on the TSX Venture
Exchange ("TSXV") is at least $0.20
for a period of not less than 10 consecutive trading days, the
Warrants will expire, at the sole discretion of X-Terra, on the
30th day after the date on which X-Terra sends a notice
in prescribed form to the holders of the Warrants.
X-Terra intends to use the proceeds from the private placement
for exploration on certain of its mining exploration properties in
Québec and New Brunswick and for working capital purposes.
In connection with the private placement, X-Terra paid cash
commissions to two securities dealers in an aggregate amount of
$9,948.75. In addition, X-Terra
granted finders' options to Canaccord Genuity Corp. and Leede Jones
Gable Inc. entitling them to acquire up to an aggregate of 132,650
additional common shares of X-Terra at a price of $0.075 per share for a period of 24 months.
As a result of the closing of the private placement, there are
91,169,937 common shares of X-Terra issued and outstanding. Under
applicable securities legislation, the securities issued in the
private placement are subject to a four-month hold period, expiring
on December 28, 2021.
About X-Terra Resources Inc.
X-Terra Resources is a resource company focused on acquiring and
exploring precious metals and energy properties in Canada.
Forward-Looking Statements
This news release contains statements that may constitute
"forward-looking information" within the meaning of applicable
Canadian securities legislation. Forward-looking information may
include, among others, statements relating to the use of proceeds
from the private placement, statements regarding the future plans,
costs, objectives or performance of X-Terra Resources, or the
assumptions underlying any of the foregoing. In this news release,
words such as "may", "would", "could", "will", "likely", "believe",
"expect", "anticipate", "intend", "plan", "estimate" and similar
words and the negative form thereof are used to identify
forward-looking statements. Forward-looking statements should
not be read as guarantees of future performance or results, and
will not necessarily be accurate indications of whether, or the
times at or by which, such future performance will be achieved. No
assurance can be given that any events anticipated by the
forward-looking information will transpire or occur, including
additional closings of the private placement. Forward-looking
information is based on information available at the time and/or
management's good-faith belief with respect to future events and
are subject to known or unknown risks, uncertainties, assumptions
and other unpredictable factors, many of which are beyond X-Terra
Resources' control. These risks, uncertainties and assumptions
include, but are not limited to, those described under "Financial
Instruments" and "Risk and Uncertainties in X-Terra Resources'
Annual Report for the fiscal year ended December 31, 2020, a copy of which is available
on SEDAR at www.sedar.com, and could cause actual events or results
to differ materially from those projected in any forward-looking
statements. X-Terra Resources does not intend, nor does X-Terra
Resources undertake any obligation, to update or revise any
forward-looking information contained in this news release to
reflect subsequent information, events or circumstances or
otherwise, except if required by applicable laws.
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of the release.
SOURCE X-Terra Resources Inc.