J2 Metals closes $3.8-million private placement

Executive Summary

• J2 Metals Inc. has closed the second and final tranche of its upsized non-brokered private placement, bringing total gross proceeds to $3.8 million.
• The transaction involves the issuance of subscription receipts convertible into common shares and warrants, with proceeds held in escrow pending the completion of a plan of arrangement with Twenty Mile Metals Inc.
• Insiders participated in the offering, and the company plans to use net proceeds for general corporate purposes while advancing exploration at its Miniac project.

Key Details

• Transaction Structure: Closed the second and final tranche of a non-brokered private placement, upsized from an initial $2.5 million to $3.8 million.
• Price: $0.25 per subscription receipt.
• Second Tranche Details:
  • Issued 6,577,800 subscription receipts.
  • Aggregate gross proceeds: $1,644,450.
• First Tranche Details:
  • Closed the day prior.
  • Aggregate gross proceeds: $2,155,550.
• Total Gross Proceeds: $3,800,000.
• Warrant Terms: Each subscription receipt entitles the holder to one common share and 0.5 common share purchase warrants upon conversion.
  • Exercise Price: $0.40 per share.
  • Duration: 24 months following the date of conversion.
• Use of Proceeds: Held in escrow pending satisfaction of release conditions (completion of plan of arrangement with Twenty Mile Metals Inc.). If conditions are not met, funds are returned with interest. Net proceeds intended for general corporate purposes.
• Finder’s Fee: $75,985 in cash and 303,940 warrants (exercisable at $0.40/share for 24 months) paid in connection with the second tranche.
• Insider Participation:
  • Thomas Lamb (CEO): 300,000 receipts ($75,000).
  • Toby Pierce: 136,000 receipts ($34,000).
  • Graham Giles: 168,000 receipts ($42,000).
  • Total insider subscription: $151,000.
• Regulatory Status: Subject to TSX Venture Exchange approval. Securities subject to a 4-month and 1-day hold period. Exempt from formal valuation and minority shareholder approval under MI 61-101.
• Future Plans: CEO Thomas Lamb announced plans to raise critical minerals flow-through capital at $0.35/share to fund 3-D IP and Phase 2 drilling at the Miniac project in Quebec.

Notable Quotes

• "This is an excellent result and a great foundation for our company. Next, we are raising critical minerals flow-through at 35 cents per share to advance our 100-per-cent-owned Miniac project in Quebec's Abitibi greenstone belt. We will be moving briskly there to conduct 3-D IP and phase 2 drilling." — Thomas Lamb, CEO