David H. Brett, President and CEO, Pacific Bay Minerals Ltd. (TSX Venture: PBM, “Pacific Bay” or the “Company”) reports that the Company has closed a $366,440 gross proceeds first tranche a $537,500 non-brokered private placement announced November 4, 2020. The Company issued 1,886,800 Flow Through Units (the “FT Units”) at a price of $0.175 for proceeds of $330,190 and 290,000 Non Flow Through units (the “NFT Units”) at a price of $0.125 per unit for proceeds of $36,250. Each FT Unit consists of one “flow-through share” (as defined in subsection 66(15) of the Income Tax Act (Canada)), which is a common share and one warrant to purchase one non flow through share at a price of $0.225 for one year. Each NFT Unit consists of one common share and one warrant to purchase one additional common share at a price of $0.175 for one year.  

The Company paid finder’s fees related to the closing consisting of $24,338 in cash and issuance of 141,876 finder’s warrants whereby each finder’s warrant entitles the holder to purchase one common share at a price of $0.125 for a period of one year. All securities issued under the closing are subject to a mandatory hold period expiring April 9, 2021.

Four insiders of the Company participated in the financings.  Participation of insiders of the Company in the financings constitutes a related party transaction as defined under Multilateral Instrument 61-101 (Protection of Minority Security Holders in Special Transactions) (“MI 61-101”). The Company has relied on the exemption from the formal valuation requirements of Section 5.4 of MI 61-101 pursuant to Subsection 5.5(a) of MI 61-101 and the exemption from the minority approval requirements of Section 5.6 of MI 61-101 pursuant to Subsection 5.7(1)(a) of MI 61-101.

The Company plans to use the proceeds of the financing to explore its 100% owned British Columbia gold and polymetallic properties and for working capital purposes. 

Pacific Bay Minerals Ltd.
Per/

David H. Brett, MBA
President & CEO
Contact: David Brett, 604-682-2421, dbrett@pacificbayminerals.com