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Property Purchase Agreements
Sojourn Exploration Inc. (the “Company” or “Sojourn“) is pleased to advise that further to its previous announcements on August 9, 2018 and August 23, 2018, it has closed on the mineral property purchase agreements with Seven Devils Exploration Ltd. (“Seven Devils“) for Seven Devils’ Oxide Peak, Eagle, Rip and Teeta Creek properties, and with Millrock Resources Inc. (“Millrock”) for Millrock’s Willoughby, Oweegee, and Todd Creek properties, all located in British Columbia.
The Company has also entered into Investor Rights Agreements (the “Agreements”) with Seven Devils and Millrock, entitling Seven Devils to nominate two board members and Millrock to nominate one board member. The Agreements also entitle Seven Devils and Millrock to maintain their ownership percentage in the Company by participating in future offerings of the Company’s securities.
New Management Team and Board
Sojourn has appointed the following management team members: Dr. Tyler Ruks as Chief Executive Officer and President, Nigel Luckman as Chief Operating Officer and Jeff Kyba as Vice President Exploration. John Meekison will remain as Chief Financial Officer. Timothy Henneberry has resigned as Interim Chief Executive Officer.
Sojourn’s board will be reconstituted to comprise four directors, including: Tyler Ruks, Gregory Beischer, John Meekison and Joel Dumaresq. Don Lay and Timothy Henneberry have resigned as Sojourn directors. The new board wishes to acknowledge and thank Mr. Lay and Mr. Henneberry for their time and service to Sojourn.
Sojourn also has closed the second tranche of its non-brokered private placement (the “Placement”) announced on August 9, 2018, raising additional gross proceeds of $496,500 by the sale of 4,965,000 units. In total, the Company raised gross proceeds of $2,800,000 through the issuance of 28,000,000 units. Each unit consists of one common share and one share purchase warrant entitling the holder to acquire an additional common share at a price of $0.15 per common share for a period of three years from closing.
The units sold in the second tranche of the Placement and any shares issued on the exercise of the warrants comprising these units, are be subject to a resale hold period under applicable Canadian securities laws which expires on January 14, 2019.
Sojourn intends to use the net proceeds of the Placement for early stage exploration of the Millrock and Seven Devils Properties, business development to attract joint venture partners, general administrative purposes, and for working capital. Approximately $600,000 of the net proceeds has been allocated to the exploration of the Oweegee Property; approximately $400,000 of the net proceeds has been allocated to the exploration of the Teeta Creek and Eagle projects; and approximately $500,000 of the net proceeds has been designated for potential acquisition and exploration of additional copper, gold and silver prospects. The remaining net proceeds will be used for general and administrative purposes.
Sojourn will provide a further update regarding its exploration programs and other activities in due course.
On behalf of the Board of Directors,
Tyler Ruks, Chief Executive Officer, President and Director
For further information please contact:
Telephone: (604) 649-8778
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CAUTIONARY NOTE REGARDING FORWARD LOOKING STATEMENTS: This news release contains forward-looking statements or forward-looking information (forward-looking statements). These statements can be identified by expressions of belief, expectation or intention, as well as those statements that are not historical fact. Forward-looking statements involve a number of risks, uncertainties and assumptions that could cause actual results or events to differ materially from those expressed or implied by the forward-looking statements. Forward-looking statements contained in this press release are based on our current estimates, expectations and projections, which the company believes are reasonable as of the current date. Actual results could differ materially from those anticipated or implied in the forward-looking statements and as a result undue reliance should not be placed on forward-looking information.