Electric Metals (TSX-V:EML) (USA) Limited said it has closed the second and final tranche of its previously announced non-brokered financing with Quail Bend LLC, issuing 14,255,319 company units, at a price of C$0.235 per unit, for gross proceeds of C$3,349,999.97 in the current tranche and C$5 million in total.
The mineral development company said a minimum of 80% of the funds raised from proceeds of the offering will be used on development of the Emily Manganese Project in Minnesota, including metallurgical and battery test work, process design, an updated NI 43-101 resource report, and advancing environmental and other technical studies.
Each unit consisted of one company common share plus one share purchase warrant, with each warrant exercisable to acquire one additional Electric Metals (TSX-V:EML) common share at an exercise price of $0.35 for a period of 24 months from the date of issuance of the warrant, which may be cashlessly exercised subject to certain conditions.
The company noted that upon closing of the final tranche, Quail Bend became a "Control Person" and has been granted certain investor rights pursuant to an investor rights agreement, which it will retain so long as it controls 10.0% or more of the issued and outstanding Electric Metals common shares.
It added that the rights include the appointment of Steve Durbin as a company director as Quail Bend's nominee.
As well, Quail Bend will have the right to participate in any future public or private equity financing to maintain its pro rata ownership interest in Electric Metals, and to potentially increase its ownership interest, to the extent there is additional room in the relevant financing, according to the company.
Electric Metals is a US-based mineral development company with manganese and silver projects geared to supporting the transition to clean energy.
The company's principal asset is the Emily manganese project in Minnesota, which has been the subject of considerable technical studies, including a National Instrument 43-101 Technical Report - Resource Estimate, with over US$26 million invested to date.
Contact Sean at sean@proactiveinvestors.com