District Metals Corp said it has completed its previously-announced brokered private placement financing with Haywood Securities Inc, raising total gross proceeds of C$1.8 million by issuing 7.2 million company units at a price of $0.25 per unit.
The company said net proceeds from the offering will be used for exploration at its Tomtebo property in Sweden, and for working capital and general corporate purposes.
“This funding will allow us to continue the ongoing Phase II exploration program at our high grade polymetallic Tomtebo Property located in the Bergslagen Mining District of south-central Sweden planned to re-commence in early-2022,” District Metals CEO Garrett Ainsworth said in a statement.
READ: District Metals hails latest drill assays from Steffenburgs zone at Tomtebo project
“We are eager to continue advancing the highly prospective Tomtebo Property with a focus on defining the high grade polymetallic Steffenburgs zone, which recently returned 14.3 metres at 9.5% zinc, 2.3% lead, 40 grams per tonne (g/t) silver, 0.4 g/t gold, and 0.2% copper,” Ainsworth added.
Each unit of the offering consisted of one District Metals common share plus one-half of one common share purchase warrant, which entitles the holder to acquire one common share in the company at a price of $0.35 per share for a period of 24 months from the closing date.
As well, the company noted it paid an agent a cash commission of up to 6% of the gross proceeds raised under the offering, as well as issued a total of 358,320 compensation options, with each such compensation option entitling the holder to purchase one unit of the company at a price of $0.25 per unit for a period of 24 months from the date of issuance.
All securities issued and issuable pursuant to the offering are subject to a statutory hold period and may not be traded until April 15, 2022, except as permitted by applicable securities legislation and the rules and policies of the TSX Venture Exchange.
District Metals is a minerals exploration and development company currently focused on its flagship Tomtebo project, which sits in the Bergslagen mining district of south-central Sweden and comprises 5,144 hectares (Ha). It sits between the historic Falun Mine and Boliden's Garpenberg mine that are located 25 kilometres to the northwest and southeast, respectively.
Contact Sean at sean@proactiveinvestors.com