iMetal Resources arranges $4-million private placement

Mr. Saf Dhillon reports IMETAL RESOURCES ANNOUNCES NON-BROKERED PRIVATE PLACEMENT iMetal Resources Inc. will offer up to 40 million units at a price of 10 cents per unit, by way of non-brokered private placement, for gross proceeds of up to $4-million. Each unit will consist of one common share in the capital of the company and one transferable share purchase warrant of the company. Each warrant entitles the holder thereof to purchase one additional share of the company at a price of 20 cents for a period of 36 months after the closing of the offering. The warrants will be subject to an accelerated expiry if, any time after the date that is four months and one day after the closing date of the offering, the closing price of the shares on the TSX Venture Exchange or such other market as the shares may trade from time to time, is or exceeds 40 cents for 10 consecutive trading days, in which event the holders of the warrants may, at the company's election, be given notice and the company will issue a press release announcing that the warrants will expire 30 days following the date of such press release. The warrants may be exercised by the holder of the warrants during the 30-day period between the date of the press release announcing the accelerated expiry date and the expiration of the warrants. The company intends to use the net proceeds of the offering toward further exploration at the company's properties as well as for general working capital. In connection with the offering, the company has engaged Integrity Capital Group Inc. to act as its financial adviser and support its efforts. For further information, please contact Integrity at [email protected]. The company has agreed to pay Integrity a fee on any subscribers introduced by Integrity to the offering consisting of: (i) a cash commission equal to 8 per cent of the gross proceeds from subscribers introduced by Integrity to the offering; and (ii) non-transferable broker warrants equal to 8 per cent of the number of units sold to subscribers introduced by Integrity to the offering. Each broker warrant will entitle the holder to acquire one unit at an exercise price of 10 cents for a period of 36 months after the closing of the offering. In connection with the offering, the company may also pay finders' fees to additional eligible third parties who have assisted in introducing subscribers. Completion of the offering remains subject to receipt of all necessary regulatory approvals and acceptance of the TSX-V. All securities issued under the offering will be subject to a statutory hold period of four months and one day from the date of issue, in accordance with applicable Canadian securities laws. About iMetal Resources Inc. iMetal is a Canadian-based junior exploration company focused on the exploration and development of its portfolio of resource properties in Ontario and Quebec. The flagship property Gowganda West is an exploration-stage gold project with a recent discovery hole of 48.5 metres at 0.85 gram per tonne gold that borders the Juby deposit and is located within the Shining Tree camp area in the southern part of the Abitibi greenstone gold belt, about 100 kilometres south-southeast of the Timmins gold camp. The 220-hectare Ghost Mountain property, 42 kilometres northeast of Kirkland Lake, lies five kilometres west of Agnico Eagle's Holt and Holloway mine. Carheil is an exploration-stage project with multimetal potential and previous graphite results. The project is about 170 kilometres north of Rouyn-Noranda in the Northern Abitibi greenstone belt. We seek Safe Harbor.