ACME Lithium Inc has said it proposes to issue up to 833,334 units at a price of $1.20 each for aggregate gross proceeds of $1 million through a non-brokered flow-through private placement.
The company said it will use the gross proceeds of the private placement for exploration at its 100% owned Cat-Euclid and Shatford Lake lithium projects in southeast Manitoba.
ACME holds 27 claims totaling approximately 11,803 acres strategically situated in the pegmatite fields of the Bird River Greenstone Belt (BRGB) in southeastern Manitoba, Canada.
Each unit in the private placement will consist of one flow-through common share and one-half of one non-flow-through common share purchase warrant. Each whole warrant entitles the holder to purchase one additional common share at a price of $1.50 per share for two years.
READ: ACME Lithium Inc acquires two lithium projects in the Winnipeg river pegmatite region in Manitoba
The company said it may pay a 7% cash and 7% warrant finder's fee on the gross proceeds raised under the private placement.
The closing of the private placement and the issuance of the securities is conditional on the final acceptance of the CSE.
All securities that are issued pursuant to the private placement will be subject to, among other things, a hold period of four months and one day in accordance to applicable Canadian securities laws.
Led by an experienced team, ACME Lithium is a mineral exploration company focused on acquiring, exploring and developing battery metal projects in partnership with leading technology and commodity companies.
ACME has acquired or is under option to acquire a 100% interest in projects located in Clayton Valley and Fish Lake Valley, Esmeralda County Nevada, and in southeastern Manitoba.
Contact the author at jon.hopkins@proactiveinvestors.com