District Metals Corp said it has entered into an agreement with Haywood Securities Inc for a private placement of 12 million units at a price of $0.25 per unit to raise aggregate gross proceeds of up to $3 million.
The Vancouver, British Columbia-based company said that the net proceeds from the offering will be used for exploration at the company's Tomtebo project in Sweden, and for working capital and general corporate purposes.
Each unit will consist of one common share in the capital of the company and one-half of one common share purchase warrant. Each warrant will entitle the holder to acquire one common share in the capital of the company at $0.35 per warrant share for a period of 24 months from the closing date.
READ: District Metals hails latest drill assays from Steffenburgs zone at Tomtebo project
The company said it has granted the agents an option, exercisable in whole or in part by giving notice to the company at any time up to 48 hours prior to the closing date, to sell up to an additional 15% of units at the issue price.
The closing of the offering is expected on December 14, 2021.
District Metals is led by industry professionals with a track record of success in the mining industry. The company's mandate is to seek out, explore, and develop prospective mineral properties through a disciplined science-based approach to create shareholder value and benefit other stakeholders.
Contact Ritika at ritika@proactiveinvestors.com