Falco to Raise Up to $2.0 Million With Strategic Quebec Funds2:34PM ET on Friday Jul 17, 2015 by Marketwire

Falco Resources Ltd. ("Falco" or the "Company") (TSX VENTURE: FPC) announces that it is arranging a non-brokered private placement of units ("Units") to raise aggregate gross proceeds of up to $2,000,000 (the "Offering"). The Offering will be comprised of Units at an issue price of $0.40 per Unit. Major Québec institutional partners are expected to participate in the Offering. Osisko Gold Royalties Ltd. ("Osisko") will also participate in the Offering.

Each Unit shall consist of one common share in the capital of the Company (a "Common Share") and one half of one common share purchase warrant (each whole common share purchase warrant, a "Warrant"). Each Warrant shall be exercisable into one additional Common Share of the Company for 24 months from the closing date of the Offering at an exercise price of $0.52 per Common Share.

The Company may accelerate the expiry of the Warrants should the daily volume weighted average trading price of the Common Shares of the Company on the TSX Venture Exchange exceed $0.65 for a period of 20 consecutive trading days, by giving notice in writing to the Warrant holders that the Warrants shall expire on that day which is 30 days following the notice date unless exercised by the holders prior to such date.

The major Québec institutional partners will have the right to participate in any future equity financings for a period of two years in order to maintain their then current proportional equity ownership in the Company.

The net proceeds of the Offering will be used by the Company to advance and complete the Horne 5 PEA to be delivered in 2016, and for general working capital.

Closing of the Offering is anticipated to occur on or about July 22, 2015 and is subject to receipt of applicable regulatory approvals including approval of the TSX Venture Exchange. Securities issued under the Offering will be subject to a four month hold period which will expire four months plus a day from the date of closing.