Eric Sprott Announces Changes to His Holdings in Electric Metals (USA) Limited

Executive Summary

• Eric Sprott, through 2176423 Ontario Ltd., purchased 3,333,333 units of Electric Metals (USA) Limited in a private placement at $0.30 per unit for approximately $1 million.
• The transaction raises Sprott’s beneficial ownership to 17,727,272 shares and 5,833,333 warrants (≈8.8% non‑diluted, ≈11.4% partially‑diluted), crossing the 10% threshold and triggering an early‑warning filing.
• Each unit consists of one common share and half a warrant; each full warrant allows purchase of one share at $0.45 for 18 months from issuance.

Key Details

• Units Acquired: 3,333,333 units @ $0.30 per unit = ≈$1,000,000 total consideration.
• Unit Composition: 1 common share + ½ warrant (full warrant = right to buy 1 share at $0.45).
• Pre‑transaction Holdings: 14,393,939 shares and 4,166,666 warrants (≈7.7% non‑diluted, ≈9.7% partially‑diluted).
• Post‑transaction Holdings: 17,727,272 shares and 5,833,333 warrants (≈8.8% non‑diluted, ≈11.4% partially‑diluted).
• Threshold Breach: Ownership now exceeds 10%; an early‑warning report has been filed with SEDAR+.
• Purpose of Securities: Held for investment; Sprott may acquire or dispose of additional securities in the future based on market conditions and strategic considerations.
• Warrant Terms: Exercise price $0.45 per share, exercisable for 18 months from issuance date.

Notable Quotes

(No direct quotes were provided in the release.)