Delta Resources Announces Closing of Over Subscribed Non-Brokered Private Placement of $1.015M Hard Cash

KINGSTON, ON / ACCESSWIRE / December 23, 2019 / Delta Resources Limited ("Delta" or the "Company") (TSXV:DLTA) is pleased to announce that it has completed an oversubscribed non-brokered private placement (as announced November 28, 2019), by issuing 5,075,000 units of the Company at a price of $0.20 per unit, for gross proceeds of $1,015,000. Each unit consists of one common share and one half of a common share purchase warrant exercisable for up to 24 months from closing at $0.30

The net proceeds of the financing will primarily be used for exploration at its Delta-1 and Delta-2 properties in Thunder Bay, Ontario and Chibougamau, Quebec and general working capital. Any shares issued are subject to a four month plus one day hold period.

In connection with this private placement, the Company has paid cash commissions in the aggregate amount of $16,000. As additional consideration, the Company also issued an aggregate of 80,000 non-transferable compensation warrants (the "Compensation Warrants"). Each Compensation Warrant is exercisable to acquire one common share of the Company at an exercise price of $0.20 at any time in whole or in part for a period of 24 months following the closing of the Offering.

The Company is pleased to have received significant support from Quebec-based institutional fund SIDEX L.L.P. ("SIDEX"). SIDEX is an initiative of the Québec government and the Fonds de solidarité des travailleurs du Québec (F.T.Q.) whose mission is to invest in companies engaged in mineral exploration in Québec in order to diversify the province's mineral base, promote innovation and new entrepreneurs.

"As a six-month old company, raising over $1,000,000 in hard dollars at this time of year is exceptional" says André Tessier, President and CEO of Delta. "We're very proud of this accomplishment and are looking forward to more success in 2020".

"We are all very pleased to have made so much progress in such little time. The entire team at Delta has been working tirelessly to accomplish these important milestones. In less than 6 months, the Company has been re-branded, engaged a new and seasoned management team, acquired two large and very prospective Canadian assets and recently completed its first drill campaign with results pending. The closing of an oversubscribed non brokered hard cash financing at this time of year is a testament to the team at Delta", stated Frank Candido, Chairman of the Board of Delta.

Insiders of the Company subscribed for a total amount of $70,000 or 350,000 units. Participation by these insiders constitutes a related party transaction as defined under Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions ("MI 61-101"). The issuance of securities to the related parties is exempt from the formal valuation requirements of Section 5.4 of MI 61-101 pursuant to Subsection 5.5(b) of MI 61-101 and exempt from the minority shareholder approval requirements of Section 5.6 of MI 61-101 pursuant to Subsection 5.7(b) of MI 61-101. The Company did not file a material change report 21 days prior to the closing of the Offering as the details of the participation of these insiders of the Company had not been confirmed at that time.

About Delta Resources Limited

Delta Resources Limited is a new Canadian mineral exploration company born at the end of June 2019. The Company is focused on growing shareholder value through the acquisition of high-potential gold and base-metal projects in Canada, exploring these projects with state-of-the-art methods, and potentially developing these projects into mines.

Delta owns a 100% interest in the Bellechasse-Timmins gold deposit in southeastern Quebec, Canada which contains a 43-101 gold resource of 171,000 ounces at an average grade of 1.83 g/t gold in the indicated category and an additional 95,000 ounces at an average grade of 1.36 g/t gold in the inferred category (SGS Canada Inc., Bellechasse-Timmins Property Resource Estimate, Southeastern Quebec, August 1, 2012).

The company's current focus is to build a strong portfolio of mineral exploration properties with a high potential for large economic discoveries in Canada while evaluating the long-term potential of its 100% owned Bellechasse-Timmins gold deposit in southeastern Quebec.

in October 2019, Delta acquired the exclusive rights to earn a 100% interest in the Eureka Gold Discovery (Delta-1) in the Thunder Bay area of Ontario and in the R-14 (Delta-2) gold property in the Chibougamau area of Quebec. Delta carried out a drilling program at Eureka in early November. Results from this initial drilling are pending and expected in early January 2020.

ON BEHALF OF THE BOARD OF DELTA RESOURCES LIMITED.

Andre C. Tessier

President, CEO and Director

www.deltaresources.ca

We seek safe harbor. Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. The TSX Venture Exchange has not approved nor disapproved of the information contained herein.

For Further Information:

Contact Delta Resources Limited
Frank Candido, Chairman
Tel: 514-969-5530
fcandido@deltaresources.ca

or

Andre Tessier, President and CEO
Tel: 613-328-1581
atessier@deltaresources.ca

Cautionary Note Regarding Forward Looking Information

Some statements contained in this news release are " "forward looking information" within the meaning of Canadian securities laws. Forward looking information include, but are not limited to, statements regarding the use of proceeds of the non-brokered private placement and payment of the debt settlements. Generally, forward-looking information can be identified by the use of forward-looking terminology such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", "believes" or variations of such words and phrases (including negative or grammatical variations) or statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved" or the negative connotation thereof. Investors are cautioned that forward-looking information is inherently uncertain and involves risks, assumptions and uncertainties that could cause actual facts to differ materially. There can be no assurance that future developments affecting the Company will be those anticipated by management. The forward-looking information contained in this press release constitutes management's current estimates, as of the date of this press release, with respect to the matters covered thereby. We expect that these estimates will change as new information is received. While we may elect to update these estimates at any time, we do not undertake to update any estimate at any particular time or in response to any particular event.

SOURCE: Delta Resources Limited

ReleaseID: 571173