J2 Metals arranges $400,000 private placement

Executive Summary

• J2 Metals Inc. announced a non-brokered private placement of up to 3,333,333 subscription receipts at $0.12 per receipt, targeting aggregate gross proceeds of up to $400,000.
• Each subscription receipt converts into one common share and one common share purchase warrant after a four-month escrow period.
• The net proceeds are intended for general corporate purposes, with funds held in escrow until regulatory approvals (including TSX Venture Exchange acceptance) are secured.

Key Details

• Offering Structure: Non-brokered private placement of subscription receipts.
• Quantity: Up to 3,333,333 subscription receipts.
• Price: $0.12 per subscription receipt.
• Gross Proceeds: Up to $400,000.
• Conversion Terms: Upon satisfaction of the escrow release condition (four months elapsed from closing), each receipt entitles the holder to:
  • One common share in the capital of the company.
  • One common share purchase warrant.
• Warrant Terms:
  • Exercise Price: $0.25 per share.
  • Duration: 24 months following the date of conversion of the subscription receipts.
• Escrow Conditions:
  • Gross proceeds held in escrow pending satisfaction of the release condition.
  • If the condition is not satisfied, funds (plus accrued interest) are returned to holders, and receipts are cancelled.
• Hold Period: Subscription receipts and underlying securities bear a hold period of four months and one day from the closing of the offering.
• Use of Proceeds: General corporate purposes.
• Regulatory Status: Completion subject to necessary regulatory approvals, including acceptance by the TSX Venture Exchange.
• Finders' Fees: The company may pay finders' fees in connection with the offering.

Notable Quotes

• Thomas Lamb, CEO: "We have two exciting gold projects in Tier 1 jurisdictions in Quebec and Alaska. Miniac, in the northern Abitibi region of Quebec, lies within one of the world's most active and prolific gold belts... Napoleon features exceptional surface and historical results, including 593 g/t Au in outcrop, and drill intercepts by Teck and Kennecott of 0.9 g/t over 74 m and 8.9 g/t over 3.0 m. Like Miniac, Napoleon now has fresh, high-resolution geophysics in hand to guide upcoming drilling -- with the potential to deliver a major new discovery."