Equity Metals Corporation (TSX-V:EQTY, OTCQB:EQMEF) said it proposes to undertake a non-brokered private placement of securities to raise total gross proceeds of up to $1.7 million.
The 13,928,572 unit offering consists of: 5,000,000 non-flow-through units (NFT) to be sold at a price of $0.10 per NFT unit for gross proceeds of $500,000; 4,166,667 flow-through (FT) units to be sold at a price of $0.12 per FT unit for gross proceeds of $500,000; and 4,761,905 charitable flow-through (CFT) units to be sold at a price of $0.147 per CFT unit for gross proceeds of $700,000.
The company said the gross proceeds received from the sale of the FT units and CFT units will be used for work programs on the company's Silver Queen, Au-Ag, exploration property, in British Columbia. The net proceeds received from the sale of the NFT units will be used for general working capital.
READ: Equity Metals issues updated resource estimate for Silver Queen project, which shows 187% increase in Indicated category
Each NFT unit will consist of one non-flow-through common share and one transferable share purchase warrant. Each FT unit and CFT unit will consist of one flow-through common share and one warrant. Each warrant will entitle the holder to purchase one non-flow-through common share for a period of 3 years at a price of $0.15 each.
The company said it will make provision for an over-allotment option (Greenshoe) to allow a purchase of up to 10% additional units beyond the number of units in the offering.
The company said it may pay finders' fees consisting of cash and non-transferable warrants in connection with the offering, subject to compliance with the policies of the TSX Venture Exchange.
All securities issued and sold under the offering will be subject to a hold period expiring four months and one day from their date of issuance. Completion of the offering and the payment of any finders' fees remain subject to the receipt of all necessary regulatory approvals, including the approval of the TSX Venture Exchange.
The Silver Queen project, located along the Skeena Arch in the Omineca Mining Division, British Columbia, is a premier gold-silver property with over 100 years of historical exploration and development and is located adjacent to power, roads and rail with significant mining infrastructure that was developed under previous operators Bradina JV (Bralorne Mines) and Houston Metals Corp (a Hunt Brothers company). The property contains two historical declines into the No. 3 Vein, camp infrastructure, and a maintained Tailings Facility.
The Silver Queen property consists of 45 mineral claims, 17 crown grants, and two surface crown grants totalling 18,852 hectares with no underlying royalties. Mineralization is hosted by a series of epithermal veins distributed over a 6 square kilometer area.
Equity Metals owns a 100% interest, with no underlying royalty, in the Silver Queen project. The property hosts high-grade, precious- and base-metal veins related to a buried porphyry system, which has been only partially delineated. The company also has a controlling JV interest in the Monument Diamond project, Northwest Territories, strategically located in the Lac De Gras district within 40 kilometers of both the Ekati and Diavik diamond mines. The project owners are Equity Metals Corporation (57.49%), Chris and Jeanne Jennings (22.11%); and Archon Minerals Ltd. (20.4%). Equity Metals is the operator of the project.
The 100% controlled La Ronge Silica Project is an historic sand quarry located in central Saskatchewan, approximately 60 kilometers south-southeast of La Ronge, Saskatchewan and 210 kilometers west of Flin Flon, Manitoba. Preliminary studies indicate the silica deposit may be developed into a simple and profitable, low-cost mining and washing operation to produce high-purity silica (>98% SiO2), a specialty product for the EV battery industry.
Contact the author at jon.hopkins@proactiveinvestors.com