Opawica Explorations Inc. (the “Company”)(TSX.V: OPW) was incorporated under the Business Corporations Act (Ontario) on September 17, 1975 and was continued into British Columbia by Certificate of Continuation issued under the Business Corporations Act (British Columbia) on September 29, 2006. The Company is listed as Tier 2 mining issuer on the TSX Venture Exchange under the symbol "OPW". The Company is a junior resource company engaged in the acquisition, exploration and evaluation of gold and base metal mineral properties in Canada. As at the date hereof, the Company owns, subject to certain royalties, a 100% interest in each of the following mineral resource properties in Ontario and Yukon Territory, Canada:
- TKL Teck Property - four patented mineral claims located near Kirkland Lake in northeastern Ontario.
- Yukon Bro Property - massive sulphide, silver, lead, zinc property with exploration potential for gold and copper, located 120 km southeast of Faro, Yukon Territory.
The Company is engaged in the search for potential joint venture partners, mineral property acquisitions and financings.
PROPERTY ACQUISITION, PRIVATE PLACEMENT, AND SHARE CONSOLIDATION
The Company has received conditional acceptance from the TSX Venture Exchange (“TSXV”) for the purchase and sale agreement dated February 25, 2016 (the “Agreement”) between the Company and Investissements Gema Inc. (“Gema”), whereby the Company will acquire a 100% interest, subject to retained royalties, in the Bazooka, McWatters and Arrowhead claims located in northern Quebec, Canada (the “Properties”). The Agreement was approved by the Company’s Shareholders on April 6, 2016.
A condition to closing the property transaction is the consolidation of the Company’s current and outstanding share capital on a 4 old for 1 new basis (the “Consolidation”). The Consolidation was approved by the board of directors in accordance with the Company’s Articles, received the approval of the TSXV, and became effective at the opening of markets on March 18, 2016.
As a further condition to closing the property acquisition, on May 13, 2016 the Company announced a new unit private placement to raise up to $600,000 at a price of $1,000 per unit, with each unit comprised of 11,667 flow-through common shares, 8,333 non flow-through common shares, and 20,000 share purchase warrants exercisable at a price of $0.06 for a term of five years (the “Offering”). The unit pricing is equivalent to $0.05 per share and a whole warrant attached to each share that is exercisable into one further common share at a price of $0.06 for a term of five years. Up to $350,000 of the Offering will consist of flow-through shares.
The proceeds from the sale of the flow-through portion of the Offering will be used as to a minimum of $155,000 towards the Phase I recommended exploration program on the Bazooka property, and the balance on exploration programs thereafter as recommended by the Company’s Qualified Persons. The proceeds from the sale of the non flow-through portion of the Offering will be used for general working capital.
In addition to relying upon other available prospectus exemptions to effect the private placement, the Company intends to rely upon BC Instrument 45-536 (distribution through an investment dealer).
NI 43-101 technical reports on the Bazooka property dated March 20, 2016 and the Arrowhead property dated March 20, 2016 have been filed on SEDAR at www.sedar.com.
Closing of the Placement is subject to acceptance by the TSXV. If the Placement does not close by May 31, 2016, the Property Transaction may not proceed.
In October 2012, the Company acquired the option from the Town of Kirkland Lake to purchase a 100% interest in four patented mineral claims located near Kirkland Lake in northeastern Ontario, collectively known as the TKL Teck Property. In consideration, the Company incurred $50,000 in work expenditures and 100% ownership title to the property was transferred to the Company on April 21, 2015. The claims are subject to a 2% NSR and 2% Gross Overriding Receipts royalty in favour of the vendor, one-half of which can be purchased by the Company for $1,000,000 cash at any time. The Company shall have the right of first refusal to purchase the remaining one half (1%) royalty.