Mining
Monday, July 8th, 2024 5:01 pm EDT
Key Points
- Non-Brokered Offering: Alaska Energy Metals Corp. closed the first tranche of a non-brokered offering, issuing 22,255,429 special warrants at 15 cents each, raising approximately $3,338,314, with the offering increased to up to $3.5 million. Each special warrant will convert into one unit of the company, consisting of one common share and one warrant, exercisable at 20 cents per share for three years.
- Use of Proceeds and Finder’s Fees: Net proceeds from the offering will be used for Canwell prospect drilling at the Nikolai nickel project in Alaska, metallurgical studies, working capital, and marketing. The company paid cash finder’s fees totaling approximately $181,261 and issued 1,208,409 non-transferable broker warrants, exercisable at 20 cents per share for three years.
- Future Plans and NBPP: The company plans to undertake a non-brokered private placement (NBPP) to raise up to $341,250, with each NBPP unit consisting of one common share and one warrant, exercisable at 20 cents per share for three years. The NBPP is subject to TSX Venture Exchange approval, and securities issued will be subject to a four-month hold period.
Alaska Energy Metals Corp. has closed the first tranche of the previously announced non-brokered offering of 22,255,429 special warrants issued at the price of 15 cents per special warrant for gross proceeds of approximately $3,338,314. The offering has been increased from $3-million to up to $3.5-million.
Each special warrant will automatically convert into one unit of the company. Each unit shall consist of one common share of the company and one common share purchase warrant. Each warrant shall entitle the holder thereof to acquire one share at a price of 20 cents per share for a period of three years following the date of issue.
Each special warrant will automatically convert, for no additional consideration, into units on the date that is the earlier of (i) the date that is three business days following the date on which the company files a prospectus supplement to a short-form base shelf prospectus with the applicable securities regulatory authorities qualifying distribution of the units underlying the special warrants and (ii) the date that is four months and one day after the closing of the offering.
The company will use its commercially reasonable efforts to file the prospectus supplement within 60 days of the closing of the offering (not including the date of closing), provided, however, that there is no assurance that a prospectus supplement will be filed with the securities commissions, prior to the expiry of the statutory four-month hold period.
The company paid aggregate cash finder’s fees of approximately $181,261 to certain finders, being 7 per cent of the gross proceeds raised by each such finder. As additional compensation the company issued an aggregate of 1,208,409 non-transferable broker warrants to such finders. Each broker warrant is exercisable for one share at the exercise price of 20 cents for a period of three years.
The net proceeds from the offering will be used for Canwell prospect drilling at the Nikolai nickel project in Alaska, metallurgical studies, working capital and marketing purposes.
Prior to the filing of the prospectus supplement and the automatic conversion of the special warrants, the securities issued under the offering will be subject to a four-month hold period from the date of closing of the offering in addition to any other restrictions under applicable law.
The company is also pleased to announce that it will undertake a non-brokered private placement (NBPP) of units for gross proceeds of up to $341,250. Each NBPP unit will consist of one common share of the company and one common share purchase warrant. Each warrant shall entitle the holder thereof to acquire one share at a price of 20 cents per share for a period of three years following the date of issue. The company intends to pay the same cash finder’s fee and issue the same number of broker warrants as is described under the offering. The NBPP is subject to TSX Venture Exchange approval. The securities issued in connection with the NBPP will be subject to a four-month hold period, in accordance with applicable securities laws.
About Alaska Energy Metals Corp.
Alaska Energy Metals is an Alaska-based corporation with offices in Anchorage and Vancouver working to sustainably deliver the critical materials needed for national security and a bright energy future, while generating superior returns for shareholders.
We seek Safe Harbor.
