J2 Metals Inc. Announces Closing of First Tranche of Flow-Through Private Placement

Executive Summary

• J2 Metals closed the first tranche of its non‑brokered flow‑through private placement, issuing 1,365,714 FT Subscription Receipts at $0.35 each for gross proceeds of $478,000.
• Proceeds will be held in escrow and used to fund a 3D induced polarization survey and subsequent diamond drilling on the Miniac Project’s 7 km conductive horizon in Québec’s Abitibi Greenstone Belt.
• A second tranche of up to approximately $1.022 million remains open, with expected closing by mid‑March; no warrants are attached to the securities.

Key Details

• Securities Issued: 1,365,714 flow‑through subscription receipts (FT Subscription Receipts).
• Price per Receipt: $0.35.
• Gross Proceeds (First Tranche): $478,000.
• Potential Additional Funding: Up to ~$1,022,000 in a second and final tranche.
• Use of Proceeds: Fund 3D induced polarization geophysical survey and follow‑up diamond drilling program on the Miniac Project’s 7 km conductive horizon.
• Conversion Terms: Each FT Subscription Receipt converts into one common share upon satisfaction of escrow release conditions (completion of plan of arrangement with Twenty Mile Metals Inc.) without additional consideration.
• Escrow Conditions: Funds held in escrow pending fulfillment of the plan of arrangement; if not satisfied, funds plus accrued interest will be returned and securities cancelled.
• Finder’s Fees: $13,475 cash payable after conversion, subject to escrow conditions.
• Hold Period: All securities from the first tranche are subject to a four‑month‑plus‑one‑day hold period post‑closing.
• Regulatory Requirements: Offering subject to receipt of all necessary approvals, including TSX Venture Exchange acceptance.

Notable Quotes

“We are pleased to announce the successful closing of the first tranche of our flow‑through financing. The proceeds will directly fund our upcoming 3D induced polarization survey and follow‑up diamond drilling program… We expect to close the balance of the flow‑through offering by mid‑March…” – Thomas Lamb, CEO