J2 Metals Inc. Announces Closing of First Tranche of Private Placement

Executive Summary

• J2 Metals closed the first tranche of its non‑brokered private placement, issuing 8,722,200 subscription receipts at $0.25 each for gross proceeds of $2,155,550.
• The offering includes one common share and a half‑share purchase warrant per receipt; warrants are exercisable at $0.40 for 24 months after conversion.
• A second tranche of up to ~$1.64 M remains open, and the company paid finder’s fees of $71,330 cash plus 285,320 warrants.

Key Details

• First Tranche: 8,722,200 subscription receipts @ $0.25 per receipt → $2,155,550 gross proceeds.
• Escrow: Proceeds held in escrow pending satisfaction of the plan of arrangement with Twenty Mile Metals Inc.; if conditions aren’t met, funds (plus accrued interest) will be returned and securities cancelled.
• Warrant Terms: Each whole warrant allows purchase of one common share at $0.40 per share; exercisable for 24 months after receipt conversion. Hold period on all issued securities = four months + one day from closing.
• Second Tranche: Up to an additional $1,644,450 may be raised under the same terms; expected to close “in due course.”
• Finder’s Fees: $71,330 paid in cash and 285,320 warrants (exercise price $0.40, 24‑month term).
• Use of Proceeds: Funds remain escrowed until escrow release conditions are satisfied; intended to fund ongoing exploration activities, including geochemical sampling at the Sierra Plata project.
• CEO Comment: Thomas Lamb noted an upsize to $3.8 M at $0.25 and a planned $1.5 M flow‑through financing at $0.35, with expectations that the remainder of the $3.8 M will close shortly and flow‑through financing to follow.
• Regulatory Conditions: Offering subject to TSX Venture Exchange acceptance and other required approvals.

Notable Quotes

“We recently announced an upsize to $3.8 million at $0.25 and also the intention to raise up to $1.5 million of flow‑through at $0.35. We anticipate that the rest of the $3.8 million will close within the next few days, with the flow‑through to follow.” – Thomas Lamb, CEO