Collective Metals arranges $1.5-million financing

Executive Summary

• Collective Metals Inc. announced a non-brokered private placement financing of up to 17,647,058 units at a price of 8.5 cents per unit, aiming to raise up to $1.5 million in gross proceeds.
• Each unit consists of one common share and one transferable common share purchase warrant, with the warrants exercisable at 10 cents per share for two years.
• Proceeds will be used for exploration on the company's Rocas property and for general working capital.

Key Details

• Financing Structure: Non-brokered private placement of up to 17,647,058 units.
• Purchase Price: 8.5 cents per unit.
• Gross Proceeds: Up to $1.5 million.
• Unit Composition: Each unit includes one common share and one transferable common share purchase warrant.
• Warrant Terms:
  • Exercisable into one additional common share per warrant.
  • Exercise Price: 10 cents per share.
  • Duration: Two years from the closing date.
  • Acceleration Clause: If shares close at or above 20 cents for 10 consecutive trading days on the Canadian Securities Exchange, the company may accelerate the expiry date. Upon announcement, warrants will expire 30 calendar days after the news release date.
• Use of Proceeds: Exploration on the company's property and general working capital purposes.
• Investor Type: Qualified investors, relying on exemptions from prospectus and registration requirements.
• Finders' Fees: The company may pay finders' fees to eligible finders, subject to securities laws and CSE policies.
• Hold Period: Four months and one day on all securities issued under the placement.
• Company Asset Context: The Rocas project comprises 4,002 hectares located 75 km southwest of the Key Lake mine and mill facilities. It hosts uranium showings with historical grab samples grading up to 0.5% U3O8, none of which have been drill tested.