EDM Resources arranges $1-million private placement

Executive Summary

• EDM Resources Inc. has arranged a non-brokered private placement of 9,090,909 units for total gross proceeds of C$1,000,000.
• The proceeds will be used to advance the Scotia mine to a production decision and for general working capital purposes.
• The offering includes common shares and warrants, with specific acceleration clauses for warrant expiry based on share price performance.

Key Details

• Transaction Structure: Non-brokered private placement.
• Units Offered: 9,090,909 units.
• Price: 11 cents per unit.
• Gross Proceeds: C$1,000,000.
• Unit Composition: Each unit consists of one common share and one common share purchase warrant.
• Warrant Terms:
  • Each whole warrant entitles the holder to purchase one common share.
  • Exercise Price: 14 cents per share.
  • Duration: 36 months from the issue date.
  • Acceleration Clause: If common shares trade at or above a volume-weighted average trading price of 30 cents for 10 consecutive trading days, the company may accelerate the expiry of the warrants to 30 days from the date of written notice.
• Hold Period: Common shares, warrants, and warrant shares are subject to a four-month-plus-one-day hold period from the closing date pursuant to Canadian securities laws.
• Use of Proceeds: Advancing the Scotia mine to a production decision and general working capital.
• Insider Participation: Certain directors, officers, and insiders are expected to participate, constituting a related party transaction exempt from valuation and minority shareholder approval requirements under Multilateral Instrument 61-101.
• Regulatory Status: Subject to TSX Venture Exchange approval.