“`html
In a significant development for Defense Metals Corp., the company has officially announced the closure of its previously disclosed private placement, which has successfully generated gross proceeds amounting to C$16,153,334. This funding, a combination of both a brokered and a non-brokered offering, positions the company well for its future endeavors, particularly the upcoming Bankable Feasibility Study.
Table of Contents:
Details of the private placement
The private placement consisted of two parts: the Brokered Offering and the Non-Brokered Offering.
Under the Brokered Offering, Defense Metals raised an impressive C$11,500,200 through the issuance of 38,334,000 units at a unit price of C$0.30. This amount reflects the exercise of an option by the agents to increase the offering by approximately 15%, showcasing robust market interest.
Non-brokered offering insights
Meanwhile, the Non-Brokered Offering contributed an additional C$4,653,134, through the sale of 15,510,446 units. The company anticipates closing a second tranche of this offering soon, with the potential to raise up to C$570,000 more. Both offerings were executed in accordance with the listed issuer financing exemption, allowing for a more streamlined approach to funding.
Structure and components of the units
Each unit sold in the offerings comprises one Class A common share and half of a warrant. Each whole warrant grants the holder the right to purchase an additional common share at a price of C$0.45 until October 31. Notably, these warrants are subject to an accelerated expiry clause, which can be triggered if the company’s shares trade at or above $0.90 for ten consecutive trading days.
Financial partnerships and commissions
The offering was facilitated by Paradigm Capital Inc., acting as the lead agent and sole bookrunner, in collaboration with EAS Advisors LLC through Odeon Capital Group LLC. For their services, the agents received a total cash commission of C$805,014 and were granted 2,683,380 non-transferable compensation options. These options allow agents to purchase shares at $0.30 each, valid until October 31. Additionally, finders’ fees of $41,582 were paid, accompanied by the issuance of 63,708 compensation options to eligible finders.
Future plans and strategic use of funds
Looking ahead, the net proceeds from the private placement will be allocated towards various strategic initiatives. The company aims to optimize the flow sheet from its pre-feasibility study and to finalize pilot plant test work that supports this optimized flow sheet. Furthermore, the funds will support energy and transmission studies, as well as kickstarting a feasibility study focused on the Wicheeda project in the near future.
Insider participation and compliance
Insiders of the company also participated in the Non-Brokered Offering, contributing approximately C$670,300. This insider involvement is categorized as a related party transaction under Multilateral Instrument 61-101, with exemptions applied to formal valuation and minority shareholder approval requirements, ensuring compliance with regulatory standards.
All securities mentioned in this announcement are not registered under the United States Securities Act and cannot be offered or sold in the United States without proper registration or exemption. This press release is not an offer to sell or a solicitation to buy any securities and should not be treated as such.
For further inquiries or detailed information, interested parties can visit the company’s website or contact the CEO, Mark Tory, directly.
“`
