Forsys closes $18.92-million private placement

Executive Summary

• Forsys Metals Corp. has closed its previously announced bought deal private placement, raising gross proceeds of C$18.9 million.
• The company sold 33,796,000 units at a price of 56 cents per unit, including the partial exercise of the overallotment option.
• Net proceeds are designated for the advancement of the Norasa uranium project in Namibia, as well as working capital and general corporate purposes.

Key Details

• Gross Proceeds: C$18,925,760 total, which includes C$1,925,280 from the partial exercise of the overallotment option.
• Units Sold: 33,796,000 units.
• Price Per Unit: 56 cents.
• Underwriter: Red Cloud Securities Inc. acted as sole underwriter and bookrunner.
• Unit Composition: Each unit consists of one Class A common share and one-half of one Class A common share purchase warrant.
• Warrant Terms (Investors): Each whole warrant entitles the holder to purchase one Class A common share at an exercise price of 80 cents. Warrants expire on October 16, 2028.
• Use of Proceeds: Financing the advancement of the Norasa project in Namibia, working capital, and general corporate purposes.
• Regulatory Basis: Issued pursuant to the listed issuer financing exemption under National Instrument 45-106 (Part 5A) and Coordinated Blanket Order 45-935. Securities are not subject to a hold period under Canadian securities laws.
• Underwriter Compensation: Red Cloud received aggregate cash fees of $1,135,545.60 and 2,027,760 common share purchase warrants.
• Broker Warrant Terms: Exercisable into one Class A common share at 66 cents per share, expiring October 16, 2028. Subject to a statutory hold period; may not be traded until February 17, 2026.
• Insider Participation: An insider purchased an aggregate of 8,928,600 units. This constitutes a related-party transaction under Multilateral Instrument 61-101, for which exemptions from formal valuation and minority shareholder approval were relied upon.
• Status: Closing is subject to final approval of the Toronto Stock Exchange (TSX).