New Age Metals Closes First Tranche of Private Placement with Eric Sprott Raising $2,450,000
Executive Summary
- New Age Metals Inc. closed the first tranche of a non‑brokered private placement, raising $2.45 million in gross proceeds.
- The financing consisted of 1,730,771 flow‑through units (FT Units) at $0.26 each and 9,090,910 non‑flow‑through units (NFT Units) at the same price.
- Proceeds will be used for exploration/development of projects in Newfoundland, Ontario and Manitoba (FT Units) and for general working capital (NFT Units).
Key Details
- Unit Structure
- FT Unit = 1 flow‑through common share + ½ share purchase warrant (full warrant = right to buy 1 additional share at $0.40 for 3 years).
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NFT Unit = 1 common share + ½ share purchase warrant (same exercise terms as FT warrants).
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Pricing & Gross Proceeds
- Price per unit: $0.26.
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Total gross proceeds from first tranche: $2,450,000.
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Finder’s Fees
- Cash fee: $27,000.02 paid to GloRes Securities Inc. and PB Markets Inc.
- Additional finder warrants: 142,307 non‑transferable warrants exercisable at $0.26 for three years.
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No finder fees were paid for the NFT Units.
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Holding Period
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All securities subject to a four‑month + one‑day hold period, expiring 2026‑02‑04 under Canadian securities law.
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Use of Proceeds
- FT Unit proceeds: exploration and development of projects in Newfoundland, Ontario, Manitoba.
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NFT Unit proceeds: exploration and general working capital.
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Insider Participation
- Eric Sprott (through 2176423 Ontario Ltd.) purchased 9,090,910 NFT Units at $0.22 per unit for $2,000,000.20.
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Post‑placement, Sprott controls ~33.1 % of outstanding shares on a non‑diluted basis (≈37.4 % partially diluted).
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Related Party Transaction
- The NFT Unit purchase by an existing insider qualifies as a related‑party transaction under MI 61‑101 and TSX‑V Policy 5.9.
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Exemptions were relied upon because the fair market value and consideration did not exceed 25 % of market capitalization.
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Regulatory Status
- Transaction pending approval by the TSX Venture Exchange.
- A material change report will be filed within 21 days prior to closing; none was required earlier as insider details were unavailable at that time.
Notable Quotes
“The successful close of this financing provides us with essential capital to advance our exploration programs across key jurisdictions and supports our long‑term growth strategy.” – Harry G. Barr, Chairman and CEO