Mining
Monday, June 24th, 2024 3:06 pm EDT
Key Points
- Neotech Metals Corp. plans to conduct a non-brokered private placement LIFE financing to raise between $1.5 million and $2.5 million by issuing 6 to 10 million units at $0.25 per unit, with each unit consisting of one common share and one warrant exercisable at $0.35 for 36 months.
- The warrants include an acceleration clause, allowing the company to shorten the expiry date if the stock price exceeds $0.50 for 10 consecutive trading days, and finders may be compensated with up to 7% cash commission and finders’ warrants.
- Proceeds from the offering will fund exploration expenditures and corporate operating expenses, with the securities being offered to Canadian residents (except Quebec) under the listed issuer financing exemption, without resale restrictions.
Neotech Metals Corp. intends to complete a non-brokered private placement LIFE financing for total proceeds of a minimum of $1.5-million and up to a maximum of $2.5-million, consisting of a minimum of six million units of the company and up to a maximum of 10 million units at a price of 25 cents per unit. Each unit will comprise one common share in the authorized share structure of the company and one common share purchase warrant of the company. Each warrant entitles the holder to purchase one additional common share of the company at a price of 35 cents for a period of 36 months from the date of issuance.
The warrants will be subject to an acceleration provision, whereby if for any 10 consecutive trading days the closing price of the company’s common shares exceeds 50 cents per share on the Canadian Securities Exchange, the company may announce by way of news release that the expiry date of the warrants will be accelerated to 30 days thereafter.
The company may compensate certain finders with a cash commission of up to 7 per cent of the aggregate gross proceeds raised from the offering and issue finders’ warrants equivalent to 7 per cent of the total units subscribed under the offering.
Subject to compliance with applicable regulatory requirements and in accordance with National Instrument 45-106 — Prospectus Exemptions, the units issuable under the offering will be offered for sale to purchasers resident in all provinces of Canada (except Quebec) pursuant to the listed issuer financing exemption under Part 5A.2 of NI 45-106. Pursuant to NI 45-106, the securities issued to Canadian resident subscribers under the offering will not be subject to resale restrictions.
The net proceeds from the sale of the units will be used for exploration expenditures as well as corporate and general operating expenses. There is an offering document related to this offering that can be accessed under the company’s SEDAR+ profile and on the company’s website. Prospective investors should read this offering document before making an investment decision.
About Neotech Metals Corp.
Neotech Metals is a mineral exploration company dedicated to discovering and developing valuable mineral resources in promising regions around the world. With a strong commitment to environmental stewardship and sustainable practices, Neotech is positioned to make a positive impact while maximizing the potential of its exploration properties.
The company is based in Vancouver, B.C., and owns 100 per cent of its Treo rare earth element property, located 90 kilometres northeast of Prince George, B.C., and 100 per cent of its Foothills rare earth element property, located in central British Columbia.
We seek Safe Harbor.
