Momentum Public Relations
Press Release: March 14, 2019
iMetal Resources Inc. has closed a private placement at 15 cents per unit for gross proceeds of $250,000, subject to TSX Venture Exchange approval. In addition, the company is pleased to announce that it has received proceeds of approximately $500,000 related to the exercise of warrants since Nov. 1, 2018.
The company will issue 1,666,667 units at a price of 15 cents per unit, a premium of approximately 30 per cent to the market price. Each unit consists of one common share of the company and one share purchase warrant. Each warrant will entitle the holder to purchase one additional common share, exercisable at a price of 20 cents per share for a period of 24 months from the date of issue.
A new institutional investor is participating for the largest portion of the placement. Insiders of the company have subscribed for an aggregate of 146,667 units for gross proceeds of $22,000 under the private placement alongside support from existing shareholders.
iMetal has agreed to pay finder’s fees of 10 per cent cash and 10 per cent warrants in relation to the private placement. The finder’s warrants will entitle the holder to purchase one additional common share, exercisable at a price of 20 cents per share for a period of 24 months from the date of issue. The company has also agreed to pay finder’s fee broker warrants on a portion of the private placement, which will entitle the holder to purchase one additional common share, exercisable at a price of 16 cents per share for a period of 24 months from the date of issue. All finder’s fees are subject to TSX Venture Exchange approval.
All securities issued under the private placement are subject to a mandatory hold period of four months plus one day following the closing of the private placement.
The proceeds of the private placement and warrant exercises will be used for continued drilling and exploration work at iMetal’s Gowganda West property. The company will be updating investors on developments at Gowganda West in the near future.
About iMetal Resources Inc.
iMetal Resources is a Canadian-based exploration company focused on the acquisition and exploration of prospective resource properties. iMetal is focused on advancing its Gowganda West project in Ontario, Canada. iMetal trades on the TSX Venture Exchange under the ticker symbol IMR.