Clean Air Metals Inc (TSX-V:AIR, OTCQB:CLRMF) has closed a best efforts private placement for total proceeds of about $12.5 million.
The offering consisted of 23,150,400 flow-through units of which 10,869,600 were issued at $0.23 per FT Unit (FT Issue Price) and 12,280,800 at a price of $0.285 (PremiumFT Issue Price), and 32,250,000 non-flow-through units (Units) at $0.20 each (Unit Issue Price).
Each FT Unit consists of one common share and one common share purchase warrant that each qualifies as a flow-through share (within the meaning of subsection 66(15) of the Income Tax Act of Canada).
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Each Unit consists of one non-flow-through common share of the company and one non-flow-through warrant. Each warrant entitles the holder thereof to acquire one common share at $0.25 each for a period of 2 years following the closing of the offering.
The company noted that Michael Gentile, a leading strategic investor in the junior mining sector, purchased $1.65 million of the Units as part of the offering.
Clean Air Metals said it will use an amount equal to the gross proceeds it receives from the sale of the FT Units to incur eligible "Canadian exploration expenses" that will qualify as "flow-through mining expenditures" as such terms are defined in the Income Tax Act (Canada) (the Qualifying Expenditures) related to the company's projects in Ontario. All Qualifying Expenditures will be renounced in favour of the subscribers of the FT Units effective December 31, 2022.
"We are very pleased to confirm the successful closing of the financing announced January 31, 2022,” said Clean Air Metals CEO Abraham Drost in a statement. “We very much appreciate the support of existing shareholders and are pleased to add new investors as well, including Mr Michael Gentile, a noted strategic investor in the space.”
Meanwhile, Drost said that drilling with two drills has recommenced at the Escape Lake deposit and on massive sulphide target "E" at the base of the Escape intrusion.
“The program in 2022 will be focused on systematic infill drilling to upgrade the less than 15% inferred mineralization within the preliminary economic assessment (PEA) mine plan,” he said. “Drilling since the last mineral resource update on January 20, 2021, and continuing into 2022 is targeted to add additional tonnage and grade to the Escape deposit.”
He added: “Followup work to the PEA mine plan will be based on Phase 3 metallurgical test work on drill-derived mini bulk samples by Blue Coast Research in Victoria. Systematic metallurgical test work is through each year of the PEA mine plan, determining the potential to improve nickel grades in concentrate and add rhodium and cobalt as payables. The company is also testing a number of promising geophysical targets in the search for the source of massive sulphide mineralization that has been documented in both Current and Escape deposits."
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