EDM Resources closes $1-million private placement

Executive Summary

• EDM Resources Inc. has closed a non-brokered private placement raising approximately $1.0 million in gross proceeds.
• The offering consisted of units priced at 11 cents each, with significant participation from company insiders.
• Net proceeds are designated for completing the Fisheries Act Authorization Application for the Scotia mine and for general working capital.

Key Details

• Gross Proceeds: $1,000,000 (specifically $999,999.99).
• Units Sold: 9,090,909 units.
• Price Per Unit: $0.11 CAD.
• Warrant Terms: Each unit includes one share purchase warrant.
  • Exercise Price: $0.14 per common share.
  • Expiry Date: December 12, 2028.
  • Acceleration Clause: If common shares trade at or above a volume-weighted average price of $0.30 for 10 consecutive trading days, the company may accelerate warrant expiry to 30 days after written notice.
• Use of Proceeds:
  • Completion of the Fisheries Act Authorization Application for the Scotia mine (located 60 km north of Halifax).
  • General working capital.
• Insider Participation:
  • Directors, officers, and insiders acquired 1,765,455 units.
  • Classified as a related party transaction under Multilateral Instrument 61-101.
  • Exemptions from formal valuation and minority shareholder approval were relied upon as the fair market value of the related party portion did not exceed 25% of the company's market capitalization.
• Broker Compensation:
  • Cash compensation paid: $16,016.00.
  • Broker warrants issued: 145,600 warrants.
  • Broker warrant exercise price: $0.14 per share.
  • Broker warrant expiry: December 12, 2028.

Notable Quotes

• "EDM is pleased to announce the closing of this $1-million financing. Net proceeds of the offering will be used to complete the Fisheries Act Authorization Application for our Scotia mine and for general working capital purposes." — Mark Haywood, President and CEO