Sun Metals Corp. (TSXV:SUNM) announced that it has entered into an agreement with a syndicate of underwriters co-led by PI Financial Corp. and Haywood Securities Inc. for a bought deal private placement of 64,000,000 subscription receipts at an issue price of CAD 0.125 per receipt for gross proceeds of CAD 8,000,000 on November 30, 2020. The subscription receipts will be issued pursuant to a subscription receipt agreement to be entered into by the company and underwriters. In addition, the company has granted the underwriters an option to purchase up to an additional 9,600,000 subscription receipts at the issue price, for additional gross proceeds of up to CAD 1,200,000, exercisable in whole or in part at any time up to 48 hours prior to the closing date of the transaction. Pursuant to the subscription receipt agreement, the gross proceeds of the transaction will be held in escrow pending satisfaction of certain conditions, including, amongst others, the satisfaction or waiver of each of the conditions precedent to the transaction; and the receipt of all required shareholder and regulatory approvals in connection with the transaction, including the condition approval of the TSX Venture Exchange. Upon the satisfaction of the escrow release conditions, each subscription receipt will automatically convert into one unit of the company which shall be exchanged or adjusted into securities of Serengeti at the exchange ratio upon completion of the transaction, on a post-consolidation basis. Each unit will consist of one common share and one-half of one common share purchase warrant. Each warrant will be exercisable to acquire one common share for a period of 24 months from the closing of the transaction, at an exercise price of CAD 0.18, as adjusted by the exchange ratio, subject to acceleration in the event that the volume weighted average trading price of the common shares of the company on the TSX Venture Exchange is equal to or greater than CAD 0.30 for 20 consecutive trading days.