Iconic Minerals closes $3.75 million private placement

Iconic Minerals Ltd. (TSXV: ICM) (OTCQB: ICMFF) (FSE: YQGB) announced the closing of a non-brokered private placement that raised CAD$3.75 million in gross proceeds.

The company issued 30 million units at CAD$0.0125 per unit. Each unit consists of one common share and one warrant that allows the holder to purchase an additional common share at $0.17 per share for two years from the issuance date.

The warrants include an acceleration clause that permits the company to shorten the expiry period to 30 days after notice if the common shares trade at $0.35 or higher for at least 10 non-consecutive trading days, beginning four months after the financing closes.

All securities from the financing are subject to a four-month and one-day hold period in Canada. The closing requires approval from the TSX Venture Exchange.

Iconic Minerals plans to use the proceeds for exploration work on the New Pass gold property in Nevada and general working capital purposes.

The company paid finder's fees of $55,081.25 and issued 470,000 finder's warrants to Canaccord Genuity Corp. The finder's warrants are exercisable at $0.17 per share for two years and include the same acceleration clause terms.

Company insiders subscribed for 4 million units, with President and CEO Richard Kern and CFO Richard Barnett purchasing 3.34 million units combined. This makes the private placement a related party transaction under Multilateral Instrument 61-101, though the company relied on exemptions from formal valuation and minority shareholder approval requirements.

The securities have not been registered under the U.S. Securities Act of 1933 and cannot be offered or sold in the United States without registration or an applicable exemption.

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