Torr Metals (TSX-V:TMET) announced today that it plans to raise up to $600,000 through a non-brokered private placement, offering a combination of flow-through and non-flow-through shares.
The proceeds will be directed toward exploration and development activities at the company’s mineral properties in Ontario, as well as for general working capital.
The private placement will consist of two offerings: up to 2.14 million flow-through shares (FT Shares) priced at $0.14 per share and up to 3 million non-flow-through units (NFT Units) priced at $0.10 per unit.
Each NFT Unit will include one common share and one-half of one warrant. Each full warrant grants the holder the option to purchase an additional non-flow-through share at $0.20 for a period of 24 months.
The company has included an acceleration clause on the warrants. If the company’s shares trade at or above $0.40 for 10 consecutive days, Torr Metals (TSX-V:TMET) can trigger an Acceleration Notice, giving warrant holders 30 days to exercise their warrants before they expire.
Funds raised from the FT Shares will be used exclusively for Canadian exploration expenses, which will qualify as flow-through mining expenditures under Canadian tax laws. Torr Metals (TSX-V:TMET) intends to renounce these expenditures to investors by December 31, 2024, ensuring tax benefits for participants under the “look-back rule.”