- Gross Proceeds of $3,621,680
- Lead order of $1,000,000 from Eric Sprott
- Proceeds for Prefeasibility Study on River Valley Platinum Group Metals (PGM) Project, one of North America’s largest undeveloped primary palladium projects
New Age Metals Inc. (TSXV:NAM) (OTC:NMTLF) (FSE:P7J) (“NAM” or the “Company“), is pleased to announce that it has completed a first tranche closing of its non-brokered private placement offering (the “Private Placement”) raising gross proceeds of $3,621,680, with lead order of $1,000,000 from Mr. Eric Sprott.
The Company has issued an aggregate of 22,260,500 units consisting of 20,760,500 non-flow through units (“NFT Units”) at a price of $0.16 per NFT Unit and 1,500,000 flow-through units of the Company (the “FT Units”) at a price of $0.20 per FT Unit.
Each NFT Unit consisted of one common share and one-half of one Common Share purchase warrant of the Company (each whole warrant, a “Warrant”). Each Warrant shall entitle the holder thereof to purchase one additional Common Share at an exercise price equal to $0.20 per share at any time up to 24 months from closing.
Each FT Unit consisted of one flow-through share of the Company that will qualify within the meaning of subsection 66(15) of the Income Tax Act (Canada) (“FT Common Share”) and one-half of one common share purchase warrant (each whole warrant, a “FT Warrant”). Each FT Warrant shall entitle the holder thereof to purchase one Common Share at an exercise price equal to $0.25 at any time up to 24 months closing.
The Company intends to use the net proceeds from the sale of Units towards its exploration and development work on its projects. The primary use of proceeds from this financing will be for the completion of a Prefeasibility Study for the Company’s flagship River Valley Platinum Group Metals (PGM) Project, one of North America’s largest undeveloped primary palladium projects, and for general corporate and working capital purposes. The Company intends to use the net proceeds from the sale of FT Units towards its exploration work on both the Company’s PGM and Lithium divisions. This will include a maiden drill program on the Company’s Lithium Two Project in Manitoba and continued drilling at River Valley.
Tags: lithium, palladium, PGM, PGM Demand, Pine Zone, rhodium, small cap stocks, Sprott, stocks, tsx