Neotech Metals closes $3.24-million private placement

Executive Summary

• Neotech Metals Corp. has closed a non-brokered private placement of Critical Minerals Exploration Tax Credit Flow-Through (CMETCFT) units, raising gross proceeds of $3,240,445.
• The financing involved the issuance of 9,258,414 units at $0.35 per unit, including an insider transaction of 285,000 units exempt from standard minority shareholder approval requirements.
• Net proceeds are designated for qualified expenditures on mineral properties and general working capital, with warrants subject to an acceleration clause if the share price exceeds $0.75 for 20 consecutive days.

Key Details

• Transaction Structure: Non-brokered private placement of CMETCFT units.
• Units Issued: 9,258,414 CMETCFT units.
• Price Per Unit: $0.35 CAD.
• Gross Proceeds: $3,240,445.
• Unit Composition: Each unit consists of one common share (qualifying as a flow-through share under the Income Tax Act (Canada)) and one-half of one share purchase warrant.
• Warrant Terms:
  • Each warrant entitles the holder to purchase one common share.
  • Exercise Price: $0.45 per share.
  • Duration: Two years from the date of issuance.
  • Acceleration Provision: If the closing price of common shares exceeds $0.75 on the CSE for any 20 consecutive trading days post-closing, the company may accelerate the warrant expiry to 30 days thereafter.
• Hold Period: Four months and one day from the date of issue for the units and underlying securities.
• Finder’s Fees: $57,304.96 paid in cash.
• Finder Warrants: 163,728 non-transferable finder warrants issued to eligible finders.
  • Finder Warrant Terms: Acquire one share at $0.45 per share for a period of two years from issuance.
• Insider Participation:
  • 285,000 CMETCFT units issued to an insider.
  • Gross Proceeds from Insider: $99,750.
  • Regulatory Status: Constituted a related party transaction under Multilateral Instrument 61-101. Exempt from formal valuation and minority shareholder approval requirements under sections 5.5(a) and 5.7(1)(a) of MI 61-101, as the fair market value did not exceed 25% of the company's market capitalization.
• Use of Proceeds:
  • Qualified expenditures for the company's mineral properties.
  • General working capital purposes.

Notable Quotes

• None provided in the text.