The first tranche generated raising gross proceeds of $6,304,801.60 by issuance of 3,092,192 flow through units (the “FT Units”) at $1.05 per FT Unit and 3,058,000 non flow through units (the “NFT Units”) at $1.00 per NFT Unit. The Company anticipates closing its second and final tranche of the Offering before December 15, 2017.
Under the Offering, the Company planned to issue up to an aggregate of 5,000,000 NFT Units and 2,380,852 FT Units. The FT Units were oversubscribed by 711,240 FT Units in the first tranche.
Each NFT Unit is comprised of one common share of the Company (a “Common Share”) and one common share purchase warrant (a “Warrant”). Each Warrant will entitle the holder to acquire one additional Common Share of the Company for a period of 36 months from the date of closing at an exercise price of $1.15. Each FT Unit is comprised of one Common Share issued on a flow-through basis pursuant to the Income Tax Act (Canada) and one-half of one Common Share purchase warrant (each whole warrant, a “FT Warrant”). Each FT Warrant will entitle the holder to acquire one additional Common Share, on a non-flow through basis, for a period of 36 months at a price of $1.15. The securities issued under the Offering will be subject to hold period of four-months and one day.
In connection with the Offering, the Company will provide a finder’s fee to EMD Financial Inc. (“EMD”) equal to a cash payment of 8% of the gross proceeds of the Offering raised from purchasers introduced to the Company by EMD, Common Shares equal to 4% of the total number of NFT Units and FT Units sold to EMD purchasers, and non-transferable warrants equal to 4% of the total number of NFT Units and FT Units sold to EMD purchasers (the “Finder Warrants”). Each Finder Warrant will entitle the holder to purchase one common share at a price of $1.15 for a period of 36 months following the closing date.
The FT Unit proceeds will be used for qualified mineral exploration expenses on the Company’s projects in Canada. The NFT Unit proceeds are expected to be used for advancement of the Company’s lithium and magnesium assets, including continued investment into extraction equipment and PurLucid, property payments and additional acquisitions, engineering studies, permitting activities, and for general working capital.
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