iMining Re-enters Blockchain/Cryptocurrency Industry Cancels Proposed Change of Business

Vancouver, British Columbia: iMining Blockchain and Cryptocurrency Inc. (TSX-V: IMIN) (the “Company” or “iMining”) announces the cancellation of its proposed change of business and previously announced Letter of Intent (“LOI”) as outlined below. The Company is re-entering the blockchain and cryptocurrency industry to implement practical cryptocurrency and related blockchain applications and, as such, is pursuing its original business plan in the blockchain and cryptocurrency space.

Private Placement Arranged

Pursuant to the Company resuming its business in the blockchain and cryptocurrency industry, iMining has arranged a private placement of up to $700,000 (the “Financing”) through the issuance of up to 10,000,000 units (the “Units”) at a price of $0.07 per Unit.  Each Unit will be comprised of one common share and one-half of one common share purchase warrant (“Warrant”), with each whole Warrant entitling the holder to purchase one common share of iMining at a price of $0.15 per share for a period of 2 years, provided that in the event the closing price of the Company’s Shares is equal to or greater than $0.45 per share for 20 consecutive trading days, the Company may, by notice to the Warrant holders (which notice may be by way of general news release), reduce the remaining exercise period of the Warrants to not less than 30 days following the date of such notice.

The proceeds of the private placement will be budgeted as follows:

 

  • Acquisition of cryptocurrency investment assets
$ 480,000
  • Acquisition of infrastructure assets
80,000
  • Financing costs, filing fees and commission
56,000
  • Working capital
84,000
Total $700,000

There is no material fact or material change about the Company that has not been generally disclosed. Finders’ fees may be payable on this financing.  The transaction is subject to regulatory approvals.

Change of Business Cancelled

Management of the Company has decided to cancel its proposed change of business announced in October, 2020.  The Company had entered into an LOI to acquire a 100% interest in various gold and silver properties in New South Wales, Australia (the “Properties”). The deadline to finalize the proposed transaction to acquire the Properties expired on December 31, 2020 and was not renewed.

“COVID protocols in New South Wales severely impeded our ability to conduct our site visitations and perform our due diligence on the Properties,” said Gary Arca, then Interim President of iMining.  “Any effort to access and perform work on the key properties was blocked by the COVID restrictions and made it difficult to complete a 43-101 report in a timely manner.  The resulting delays were not acceptable to the Company and were not in the best interest of our shareholders.”

As the Company is not proceeding with the proposed acquisition of the Properties, Mr. Robert Eadie has been invited to rejoin the Board as a director and has been re-appointed President & CEO.

Trading in the Company’s common shares is expected to resume shortly after the Company coordinates timing with the TSX Venture Exchange.

ON BEHALF OF THE BOARD

Signed “Gary Arca”                                                            
Gary Arca, Chief Financial Officer and Director

FOR FURTHER INFORMATION PLEASE CONTACT:
Contact: Gary Arca
Telephone: 1-604-602-4935   Facsimile: 1-604-602-4936
Email: investor@imining.com

Website: www.imining.com

The TSX Venture Exchange Inc. has in no way passed upon the merits of the proposed transaction and has neither approved nor disapproved the contents of this news release.

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