Global Energy Metals Corporation has announced the closing of the second and final tranche of a non-brokered private placement for aggregate gross proceeds of $165,625, subject to final acceptance of the TSX Venture Exchange.
In total, 4,882,500 units were issued for both tranches of the private placement, for aggregate gross proceeds of C$1,220,625.
In a statement, Global Energy Metals CEO and president Mitchell Smith commented: "We are very pleased to have completed this oversubscribed private placement. The placement was oversubscribed by a total of $220,625 above the original goal of $1 million."
"The additional interest in this placement signifies the continually increasing interest in not only the battery metals market but Global Energy itself. With the financing closed the companies' technical team can continue to advance our Nevada-based Lovelock and Treasure Box projects and all exploration planned for 2022," he added.
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The company said the net proceeds of the private placement 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, USA.
Funds will also be used to support potential future acquisitions as well as for general corporate and working capital purposes allowing for ongoing growth strategy execution.
The second tranche of the private placement consists of the issuance of 662,500 units of the company at a price of $0.25 each totaling C$165,625 with a full transferable warrant at a price of $0.40 for 24 months. Each unit is comprised of one common share in the capital of the company and one common share purchase warrant.
Completion of the private placement is subject to a number of conditions, including without limitation, receipt of TSX Venture Exchange (TSXV) approval.
The company said it will pay finder's fees in accordance with the policies of the TSXV consisting of a cash commission equal to up to 8% of the gross proceeds raised under the private placement and finder warrants in an amount equal to up to 8% of the number of units sold under the placement. Each finder warrant will entitle the holder to purchase one common share of the company at a price of $0.40 per share for a period of one year. Total fees paid to all finders for the second tranche comprise C$1,200 and 4,800 finder warrants.
All securities issued on closing of the second tranche will be subject to a statutory hold period expiring July 26, 2022 (four months and one day from closing). All warrants, excluding finder warrants, issued under the second tranche will expire on March 24, 2024. Finder warrants will expire on March 24, 2023.
The securities to be issued in connection with the offering have not been nor will they be registered under the United States Securities Act of 1933, as amended, or state securities laws, and may not be offered or sold in the United States or to an account for the benefit of US persons, absent such registration or an exemption from registration.
Global Energy Metals offers investment exposure to the growing rechargeable battery and electric vehicle market by building a diversified global portfolio of exploration and growth-stage battery mineral assets.
The company recognizes that the proliferation and growth of the electrified economy in the coming decades is underpinned by the availability of battery metals, including cobalt, nickel, copper, lithium and other raw materials. To be part of the solution and respond to this electrification movement, Global Energy Metals has taken a ‘consolidate, partner and invest’ approach and in doing so have assembled and are advancing a portfolio of strategically significant investments in battery metal resources.
Contact the author at jon.hopkins@proactiveinvestors.com