Grid Metals closes $1.68M first tranche of placement

Executive Summary

• Grid Metals Corp. has closed the first tranche of its strategic private placement, raising $1.68 million in aggregate gross proceeds.
• The first tranche involved the issuance of 14 million common shares to a strategic investor at $0.12 per share.
• A second tranche is expected to close around October 30, 2025, potentially raising up to $2.35 million through additional common shares and charity flow-through shares (CFTs).

Key Details

• First Tranche Closing:
  • Aggregate gross proceeds: $1.68 million.
  • Shares issued: 14,000,000 common shares.
  • Offering price: $0.12 per common share.
  • Investor: A strategic investor.
• Second Tranche Structure (Expected):
  • Expected closing date: On or about October 30, 2025.
  • Common shares: Up to 7,060,903 shares to the strategic investor and an existing institutional shareholder at $0.12 per share.
  • Charity Flow-Through Shares (CFTs): Up to 7,575,000 CFT shares to charitable purchasers at $0.198 per share.
  • Maximum gross proceeds for second tranche: Up to $2,347,158.
• Use of Proceeds:
  • General corporate purposes and exploration primarily at the Falcon West cesium project and within the Bird River belt in southeastern Manitoba (targeting nickel, copper, and PGMs).
  • CFT proceeds specifically for exploration of the property portfolio in Manitoba (primarily Falcon West) to incur Canadian exploration expenses qualifying as flow-through mining expenditures.
• Terms and Conditions:
  • No warrants or finders' fees associated with the offering.
  • Hold period: Four months and one day from issuance for common and CFT shares.
  • Subject to customary closing conditions and final approval of the TSX Venture Exchange.
  • CFT shares eligible for the 30% Manitoba mineral exploration tax credit for Manitoba purchasers.
  • Company will renounce all qualifying expenditures in favor of CFT subscribers effective December 31, 2025.
• Investor Rights Agreement:
  • Entered into in connection with the first tranche closing.
  • Grants the investor information rights regarding properties.
  • Grants participation rights in future equity issuances.
  • Grants the right to nominate a member to the Board of Directors, contingent on maintaining stipulated ownership thresholds.

Notable Quotes

• None provided in the text.