The Company will issue 1,666,667 units at a price of $0.15 per unit, a premium of approximately 30% to the market price. Each unit consists of one common share of the Company and one share purchase warrant. Each warrant will entitle the holder to purchase one additional common share, exercisable at a price of $0.20 per share for a period of 24 months from the date of issue.
A new institutional investor is participating for the largest portion of the placement. Insiders of the Company have subscribed for an aggregate of 146,667 units for gross proceeds of $22,000 under the private placement alongside support from existing shareholders.
iMetal has agreed to pay finder’s fees of 10% cash and 10% warrants (“finder’s warrants”) in relation to the private placement. The finder’s warrants will entitle the holder to purchase one additional common share, exercisable at a price of $0.20 per share for a period of 24 months from the date of issue. The Company has also agreed to pay finder’s fee broker warrants (“broker warrants”) on a portion of the private placement, which will entitle the holder to purchase one additional common share, exercisable at a price of $0.16 per share for a period of 24 months from the date of issue. All finder’s fees are subject to TSX Venture Exchange approval.
All securities issued under the private placement are subject to a mandatory hold period of four months plus one day following the closing of the private placement.
The proceeds of the private placement and warrant exercises will be used for continued drilling and exploration work at iMetal’s Gowganda West Property. The Company will be updating investors on developments at Gowganda West in the near future.
ON BEHALF OF THE BOARD OF DIRECTORS,
iMetal Resources Inc. is a Canadian based exploration company focused on the acquisition and exploration of prospective resource properties. iMetal is focused on advancing its Gowganda West Project in Ontario, Canada. iMetal trades on the TSX Venture Exchange under the ticker symbol IMR. For further information, please call 604- 739-9713 or visit iMetal’s website at www.imetalresources.ca.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been, and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”) or any state securities laws and may not be offered or sold within the United States or to U.S. Persons (as such term is defined in Regulation S under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available).