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BRISBANE, Australia, Jan. 25, 2023 (GLOBE NEWSWIRE) -- Adyton Resources Corporation (TSX Venture: ADY) (“ Adyton ” or the“ Company ”) is pleased to announce that it has closed its previously announced CAD $400,000 non-brokered private placement (the“ Financing ”). The Company raised CAD $400,000 through the sale of 20,000,000 common shares in the capital of the Company (the“ Shares ”) at a price of CAD $0.02 per Share. The Financing was oversubscribed.
The Company intends to use the net proceeds of the Financing for exploration and development expenditures on existing mining properties, for due diligence on potential acquisition targets, for a reserve for potential asset acquisition investigations and for general working capital purposes.
Mayur Resources Limited, a control person of the Company, and certain directors and officers of the Company participated in the Financing. The participation in the Financing by such insiders constitutes a related party transaction under Multilateral Instrument 61–101 – Protection of Minority Security Holders in Special Transactions (“ MI 61-101 ”). The Financing is exempt from the formal valuation and minority shareholder approval requirements of MI 61-101 as neither the fair market value of the Shares issued to related parties nor the consideration for such Shares exceeds 25% of the Company's market capitalization. A material change report including details with respect to the related party transaction could not be filed less than 21 days prior to the closing of the Financing as the Company only confirmed the insider participation shortly before closing and the Company deemed it reasonable in the circumstances to be able to avail itself of the financing opportunity and to complete the Financing in an expeditious manner.
All the Shares issued pursuant to the Financing are subject to a four-month restricted resale period ending on May 25, 2023 under Canadian securities laws.
The Financing remains subject to final acceptance by the TSX Venture Exchange.
ON BEHALF OF THE BOARD OF ADYTON RESOURCES CORPORATION
Tim Crossley, Chief Executive Officer
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