Plateau Energy Metals Inc. (TSX-V: PLU | OTCQB: PLUUF) is pleased to announce that it has closed the non-brokered private placement announced on August 22, 2019, for gross proceeds of C$1,500,000.
Pursuant to the Offering, the company has issued 6,000,000 units at a price of C$0.25 per Unit. Each Unit consists of one common share in the capital of the Company and one-half of one non-transferable common share purchase warrant. Each whole Warrant will be exercisable to acquire one Share at an exercise price of C$0.50 per Share for a period of 24 months from the date of issuance.
Directors and officers of the Company subscribed for approximately 1,176,000 Units. Other insiders subscribed for 920,000 Units, totalling 2,096,000 Units of the Offering.
In connection with the Offering, the Company paid a finder’s fee of C$39,330 cash to Haywood Securities Inc. Haywood was also issued 157,320 non-transferable warrants. The Finder’s Warrants have the same terms as the Warrants forming part of the Units.
All securities issued under the Offering will be subject to a statutory hold period of four months and one day under applicable Canadian securities laws, expiring January 18, 2020, in addition to such other restrictions as may apply under applicable securities laws of jurisdictions outside Canada. Proceeds from the Offering will be used for working capital and general corporate purposes.
The subscription by insiders pursuant to the Offering is considered to be a related party transaction subject to Multilateral Instrument 61-101. The Company is relying on exemptions from the formal valuation and minority shareholder approval requirements provided under sections 5.5(a) and 5.7(a) of MI 61-101 on the basis that participation in the Offering by insiders do not exceed 25% of the fair market value of the Company’s market capitalization.
The securities to be offered pursuant to the Offering have not been, and will not be, registered under the U.S. Securities Act of 1933, as amended (the “U.S. Securities Act“) or any U.S. state securities laws, and may not be offered or sold in the United States or to, or for the account or benefit of, United States persons absent registration or any applicable exemption from the registration requirements of the U.S. Securities Act and applicable U.S. state securities laws. This news release does not constitute an offer to sell or the solicitation of an offer to buy nor will there be any sale of the foregoing securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.
About Plateau Energy Metals
Plateau Energy Metals Inc., a Canadian exploration and development company, is enabling the new energy paradigm through exploring and developing its Falchani lithium project and Macusani uranium project in southeastern Peru, all of which is situated near infrastructure.
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