Mich Resources Ltd. announced that it has entered into an agreement with a commercially reasonable efforts private placement basis, up to 84,000,000 subscription receipts at a price of CAD 0.25 per Subscription Receipt for gross proceeds up to CAD 21,000,000 on June 27, 2022. The transaction will include participate from major and another senior Canadian mining company in an amount totaling CAD 9,000,000. The company has additionally granted the agents an over-allotment option exercisable, in whole or in part, at the sole discretion of the agents, to purchase up to an additional number of Subscription Receipts equal to 15% of the Subscription Receipts sold pursuant to the offering at the Issue Price for a period of up to 48 hours prior to the closing of the offering.

Upon the satisfaction of the Escrow Release Conditions, each of the subscription receipts will automatically convert into one common share of the company. If the Escrow Release Conditions have not been satisfied on or prior to the date that is 90 days after the closing date of the offering, the Escrow Agent shall return the Escrowed Funds, including any interest earned thereon, to the holders of subscription receipts on a pro rata basis. Closing of the transaction is expected to occur on or about July 19, 2022, and is subject to certain customary conditions, including, but not limited to, the receipt of all necessary regulatory approvals and acceptance of the Exchange.

The transaction is subject to certain conditions that the company expects will be satisfied upon closing of the Transaction. Following completion of the transaction and the Transaction, the vendors will hold approximately 52.5% and the Strategic Investors will hold approximately 13.2% of the shares of the Company on an outstanding basis.