Global Energy Metals Corp (TSX-V:GEMC) said it has increased its previously-announced non-brokered private placement to raise gross proceeds of up to C$1.25 million, in order to accommodate investor demand.
The company noted the offering will now consist of a total of five million Global Energy Metals units priced at $0.25 per unit.
Net proceeds of the offering will be directed toward further exploration and development of its battery mineral properties, with a focus on the Lovelock Mine and Treasure Box projects in Nevada, as well as to support potential future acquisitions and for general corporate and working capital purposes.
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Each unit of the private placement will consist of one company common share plus one transferrable share purchase warrant, with each warrant being exercisable to purchase an additional share of the company for a period of 24 months from the closing date at a price of C$0.40.
The warrants are subject to an acceleration clause whereby if on any 10 consecutive trading days occurring after four months and one day has elapsed from the closing date, the daily volume-weighted average trading price of the common shares of the company is at least $0.50 per share, the company may accelerate the expiry date of the warrants to the 30th day after the date on which the company gives notice to the subscriber in accordance with the warrant of such acceleration.
As well, Global Energy Metals announced that it will close the first tranche of the private placement, which was supported by existing shareholders and insiders including officers and a director of the company, raising gross proceeds of C$1,055,000 by issuing 4,220,000 company units at a price of C$0.25 per unit.
The company noted it has agreed to pay finder’s fees in connection with the first tranche of $32,000 in cash plus 128,000 finder warrants, priced at $0.40 per share and exercisable for a period of 12 months.
Global Energy Metals added that company insiders, officers, and directors have purchased 280,000 units of the first tranche.
The company also said it intends to close the second tranche of the private placement on or before March 18, 2022.
All securities issued in connection with the offering will be subject to a four-month hold period from the date of closing.
Global Energy Metals is investing in, exploring and developing prospective, scaleable assets in established mining and processing jurisdictions in close proximity to end-use markets.
It has current copper, nickel and cobalt projects in Canada, Australia, Norway, and the US.
Contact Sean at sean@proactiveinvestors.com