March 12, 2020 – SKRR Exploration Inc. (the “Company”) (TSXV: SKRR): This news release is being disseminated as required by National Instrument 62-103 The Early Warning System and Related Take Over Bids and Insider Reporting Issues in connection with the filing of an early warning report (the “Early Warning Report”) regarding the acquisition of common shares of the Company by Edge Geological Consulting Inc. (the “Acquiror”), a company owned and controlled by Ross McElroy, a director of the Company.
The Acquiror, on March 12, 2020, acquired 1,633,977 common shares of the Company (the “Shares”) pursuant to a property option agreement with the Company dated March 11, 2020.
Prior to the acquisition, the Acquiror and Mr. McElroy jointly had beneficial ownership and control of 647,353 common shares of the Company, representing approximately 3.9% of the Company’s issued and outstanding common shares as of such time. After completion of the acquisition of the Shares, the Acquiror and Mr. McElroy now own, directly or indirectly, or exercise control or direction over, 2,281,330 common shares of the Company which represent approximately 12.7% of the 17,973,752 issued and outstanding common shares of the Company on an undiluted basis, resulting in an increase by 8.8% to the Acquiror and Mr. McElroy’s holdings after the completion of the acquisition of the Shares.
On a partially diluted basis, the Acquiror and Mr. McElroy jointly own and control 2,606,330 common shares of the Company which represents approximately 14.2% of the total number of issued and outstanding common shares of the Company.
Pursuant to the requirements of the TSX Venture Exchange, the Shares are subject to resale restrictions and legended accordingly, released as to 10% four months and one day following March 12, 2020 and an additional 15% every six months following March 12, 2020 over thirty-six months.
The securities acquired by the Acquiror are held for investment purposes. The Acquiror will review its investment in the Company’s securities on a continuing basis and such holdings may be increased or decreased in the future. The Acquiror may in the future acquire or dispose of securities of the Company, through the open market, privately or otherwise, as circumstances or market conditions dictate.
A copy of the Early Warning Report filed under applicable securities laws is available under the Company’s profile on SEDAR (www.sedar.com).
For further information, please contact:
SKRR Exploration Inc. Phone: 250-558-8340