Velox Energy Materials Inc. Confirms Terms of Proposed Non-Brokered Private Placement Financing

Executive Summary

• Velox Energy Materials Inc. announced a non‑brokered private placement of up to 89,296,272 units at $0.035 per unit, targeting gross proceeds of approximately $3.13 million.
• Each unit consists of one common share and one warrant (exercisable at $0.05 for 24 months). Finder’s fees may be paid in cash (6%) and additional warrants (6%).
• Net proceeds will fund strategic resource‑opportunity evaluation (~$500k), due‑diligence, regulatory/compliance costs, corporate administration, and general working capital.

Key Details

• Units Offered: Up to 89,296,272 units @ $0.035 per unit → Gross proceeds up to $3,125,369.52.
• Unit Composition: 1 common share + 1 common‑share purchase warrant (exercise price $0.05, 24‑month term).
• Use of Proceeds:
• ~$500,000 for evaluation of strategic resource opportunities.
• Remaining funds for due‑diligence of potential projects, regulatory and professional fees, corporate administration, and general working capital.
• Finder’s Compensation: Up to 6% cash fee plus 6% finder warrants (each warrant = right to acquire one common share at $0.05, 24‑month term).
• Related Party Participation: One director may purchase up to 5,700,000 units; transaction qualifies as a related‑party under MI 61‑101 and will rely on exemption from formal valuation/minority approval.
• Holding Period: All securities issued are subject to a lock‑up of four months and one day from issuance date.
• Regulatory Conditions: Closing contingent upon receipt of all required approvals, including TSX Venture Exchange acceptance of the private placement and finder‑fee arrangements.
• Board Approval: Release approved by Velox’s Board; signed by Director Nicole Morcombe.

Notable Quotes

(No executive quotes were included in the release.)