J2 Metals increases placement to $5.3-million

Executive Summary

• J2 Metals Inc. has announced an upsized non-brokered private placement with aggregate gross proceeds of up to $5.3 million, comprising both standard and flow-through subscription receipts.
• The financing is contingent upon the completion of a previously announced plan of arrangement with Twenty Mile Metals Inc., with all proceeds held in escrow until specific release conditions are met.
• The transaction includes the issuance of common shares and warrants for the standard tranche, while the flow-through tranche issues only common shares, with proceeds designated for eligible Canadian exploration expenses.

Key Details

• Total Gross Proceeds: Up to $5.3 million.
• Standard Subscription Receipts:
  • Amount: $3.8 million.
  • Price: 25 cents per subscription receipt.
  • Issuance: Non-brokered.
• Flow-Through (FT) Subscription Receipts:
  • Amount: Up to $1.5 million.
  • Price: 35 cents per FT subscription receipt.
• Securities Issued (Standard Tranche):
  • Upon conversion: One common share and one-half of one common share purchase warrant per subscription receipt.
  • Warrant Terms: Exercisable at $0.40 per share for 24 months following conversion.
• Securities Issued (FT Tranche):
  • Upon conversion: One common share per FT subscription receipt.
  • No warrants issued for the flow-through portion.
• Escrow Conditions:
  • Proceeds held in escrow pending satisfaction of release conditions, specifically the completion of the plan of arrangement with Twenty Mile Metals Inc.
  • If conditions are not satisfied, funds are returned to holders with accrued interest, and securities are cancelled.
• Use of Proceeds:
  • Standard Tranche: Exploration and advancement of company projects and general corporate purposes.
  • FT Tranche: Incurring eligible Canadian exploration expenses (flow-through critical mining expenditures) related to the company's project in Quebec, Canada.
  • Renunciation Date: All qualifying expenditures will be renounced in favor of subscribers effective December 31, 2026.
  • Expenditure Deadline: On or before December 31, 2027.
• Regulatory Holds:
  • Statutory hold period of four months and one day from the date of issuance for all securities.
• Closing Conditions:
  • Subject to regulatory approvals, including acceptance by the TSX Venture Exchange.
  • Company may pay finders' fees.

Notable Quotes

• No direct quotes from the CEO or President were included in the provided text.