Precious Metals
April 8, 2022

iMetal Resources(TSX.V: IMR)

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Closes $3-Million Private Placement, Led By Sprott Asset Management Lp


iMetal Resources Inc. has closed its non-brokered private placement for gross proceeds of $3-million. In connection with closing of the placement, the company issued 16,666,667 units at a price of 12 cents per NFT unit, and 6,666,667 flow-through units at a price of 15 cents per FT unit.

Each NFT unit and FT unit consists of one common share of the company and one common share purchase warrant exercisable to acquire an additional common share at a price of 20 cents until April 7, 2024. The common shares forming part of the FT units will qualify as flow-through shares within the meaning of Subsection 66(15) of the Income Tax Act (Canada). The placement included participation by funds managed by Sprott Asset Management LP, which subscribed for FT units and agreed to waive entitlement to 2,644,669 warrants they would otherwise have been entitled to receive in connection with their subscription. As a result, a total of 20,688,665 warrants were issued to subscribers in connection with the placement.

Proceeds from the placement will be used for the development of the company's Gowganda West project, as well as development of the Kerrs gold deposit and for general working capital purposes.

In connection with completion of the placement, the company paid $161,548 and issued 1,289,893 warrants to certain arm's-length third parties who assisted by introducing subscribers to the company. All securities issued in connection with the placement are subject to a statutory hold period until Aug. 8, 2022, in accordance with applicable securities laws.

Option grant

The company also announces that it has granted two million incentive stock options to certain directors, officers and consultants of the company. The options vest immediately and are exercisable at a price of 33 cents until April 8, 2027.

Disclaimer: iMetal Resources is a paid marketing client*

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