Green Battery Minerals Inc said it has increased the size of its previously announced financing announced on November 9, 2021, and November 16, 2021, for a second time due to increased demand.
The company said it has now increased the number of flow-through units (FL units) to be issued to 16,000,000 for gross proceeds of up to $2.4 million.
It previously said it would issue up to 13,500,000 FL units at a price of $0.15 per FL unit, for gross proceeds of $2.025 million.
READ: Green Battery Minerals upsizes non-brokered private placement to $2M-plus
Each FL Unit will consist of one common share in the capital of the company that is issued on a flow-through basis in accordance with the Income Tax Act (Canada) and one half of one share purchase warrant, with each whole warrant entitling the holder to purchase one (non-flow-through) common share at a price of $0.20 per warrant share for a period of twenty-four months following issuance.
The proceeds from the offering are expected to be used for Canadian exploration expenses and will qualify as flow-through mining expenditures, as defined in Subsection 127(9) of the Income Tax Act (Canada).
The proceeds will be renounced to the subscribers with an effective date no later than December 31, 2021, to the initial purchasers of the FL units in an aggregate amount not less than the gross proceeds raised from the issue of the flow-through shares, as applicable, and, if the qualifying expenditures are reduced by the Canada Revenue Agency, the company will indemnify each subscriber for any additional taxes payable by such subscriber as a result of the Company’s failure to renounce the qualifying expenditures as agreed.
Net proceeds will be used for costs associated with the continued exploration/drill program and reports for a planned PEA for the Berkwood Graphite project.
The company said finder’s fees and commissions will be payable in connection with the offering in accordance with the policies of the TSX Venture Exchange. All securities issued in connection with the offering will be subject to a statutory hold period expiring four months and one day after closing.
Completion of the offering is subject to a number of conditions, including, without limitation, receipt of all regulatory approvals, including approval of the exchange.
None of the securities to be issued in connection with the offering will be or have been registered under the United States Securities Act of 1933, as amended, and none may be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the 1933 Act.
Green Battery Minerals is managed by a team with over 150 years of collective experience with a proven track record of not just finding numerous mines but building and operating them as well.
The company's management team’s most recent success is discovering the Berkwood graphite deposit in Northern Québec. Green Battery Minerals owns 100% of this asset and the company’s shareholders will benefit from this asset as the demand for graphite for electric vehicles increases significantly.
Contact the author at jon.hopkins@proactiveinvestors.com