New Age arranges $3.5-million private placement

Executive Summary

• New Age Metals Inc. announced a non‑brokered private placement to raise up to $3.5 million in gross proceeds.
• The offering consists of up to $2.3 M of regular units at $0.22 per unit and up to $1.2 M of flow‑through (FT) units at $0.26 per FT unit.
• Mining magnate Eric Sprott has committed to subscribe for $2 million of the placement, reinforcing his status as the company’s largest shareholder (23.2%).

Key Details

• Unit Structure: Each regular unit = 1 common share + ½ common‑share purchase warrant (full warrant allows purchase of one additional share at $0.40 for up to 36 months).
• FT Unit Structure: Each FT unit = 1 flow‑through eligible common share + ½ warrant (same exercise terms as regular warrants).
• Use of Proceeds:
• FT units – exploration and development on projects in Newfoundland, Ontario, or Manitoba.
• Regular units – general working capital and further exploration activities.
• Finder’s Fee: Company may issue cash and/or non‑transferable warrants to eligible finders; such warrants permit purchase of one common share at $0.26 for 36 months.
• Insider Participation: Insiders and a control person will also participate, constituting related‑party transactions under MI 61‑101. Exemptions from formal valuation and minority approval are being relied upon because the consideration is not expected to exceed 25 % of market cap.
• Regulatory Conditions: Closing subject to TSX Venture Exchange conditional approval; all securities will have a hold period of four months plus one day. A material change report will be filed within 21 days prior to closing.
• Management Quote (Harry Barr, CEO): Emphasized the strategic timing of the financing given rising PGM, gold, and antimony prices and highlighted Sprott’s continued support enabling more aggressive project acquisition and development.

Notable Quotes

“We are extremely pleased with Mr. Sprott's continued strong support of the company. His investment along with several new mining funds will allow us to continue the development of our existing projects and for the company's management team to be more aggressive with the acquisition of new projects.” – Harry Barr, Chairman & CEO

Materiality Assessment: Material – Positive** (the financing provides significant capital for exploration and development, includes a major shareholder commitment, and is likely to have a material impact on the company’s operations and financial position).