BTU Metals Corp., trading under the ticker symbols TSXV:BTU and OTCQB:BTUMF, has recently completed a significant financing round. Following their announcement on November 11, the company successfully executed a non-brokered private placement of flow-through common shares. This financing attracted considerable interest, leading to the issuance of 17,700,000 flow-through shares at a price of $0.05 per share, totaling $885,000 in gross proceeds.
Each flow-through unit consists of one common share issued on a flow-through basis, along with a half warrant that is non-flow-through. Holders of these warrants can acquire an additional common share of BTU at a price of $0.09 within one year after the offering’s closure. This financing structure ensures that the flow-through shares qualify under the Income Tax Act regulations of Canada, specifically under subsection 66(15), as well as section 359.1 of the Taxation Act in Quebec.
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Details of the financing arrangement
Due to oversubscription, BTU Metals compensated eligible finders with $58,450 in cash and issued 1,106,000 non-transferable common share purchase warrants. Each finder warrant grants the right to acquire a common share at a price of $0.05 for a period of 12 months from the issuance date. The completion of this financing is contingent upon receiving the necessary approvals from the TSX Venture Exchange. Additionally, the securities issued will be subject to a statutory hold period lasting four months and one day from the issuance date.
Market reception and future plans
Paul Wood, the CEO of BTU, expressed enthusiasm regarding the financing’s success, stating, “The overwhelming response for this financing demonstrates strong market support for BTU’s portfolio of Ontario-based exploration projects in both the prolific Red Lake and Wawa mining districts.” He emphasized the company’s commitment to advancing its projects immediately and into the following year.
About BTU Metals Corp.
BTU Metals Corp. is classified as a junior mining exploration company. Its primary assets include the Dixie Halo Project, located in Red Lake, Ontario, adjacent to the Kinross Great Bear Project, which is currently optioned to Kinross. The company also holds interests in the Dixie East project and various gold and critical mineral properties situated within the Wawa gold district. With no debt and minimal obligations, BTU Metals actively seeks to enhance its portfolio by acquiring high-quality exploration projects for the benefit of its stakeholders.
The company is strategically positioned to capitalize on its exploration initiatives. With the recent influx of capital, it aims to further its development efforts. BTU Metals is well-positioned to make significant strides in the exploration sector, leveraging its strong market support and financial backing.
Future outlook
As BTU Metals progresses, the successful closure of this financing round not only reflects robust investor confidence but also paves the way for potential growth and exploration success. The company’s strategic focus on the Ontario mining regions positions it well within a competitive landscape. Ongoing efforts to secure additional high-quality projects may enhance its operational capabilities. Stakeholders can remain optimistic as BTU continues to advance its exploration agenda, driving value and opportunities in the mining sector.
