Power Metals Corp. (TSX-V:PWM) (FRANKFURT:OAA1) is pleased to announce that it has completed a brokered bought deal private placement of 6,900,000 units at a price of $0.50 per Unit for gross proceeds of $3,450,000. Eight Capital acted as underwriter for the Offering. The Offering included Units issued on the exercise of the Underwriters’ over-allotment option in full. Each Unit is comprised of one common share of the Company and one common share purchase warrant. Each Warrant shall entitle the holder thereof to acquire one Share of the Company at a price of $0.70 until January 15, 2020.
The Offering was led by Eight Capital, pursuant to the terms of an underwriting agreement entered into by the Company and the Underwriter on January 15, 2018. Pursuant to the Underwriting Agreement, the Underwriter received a cash commission of $207,000 equal to 6% of the aggregate gross proceeds of the Offering and was granted 414,000 compensation warrants. Each compensation warrant is exercisable to purchase one Unit at an exercise price of $0.50 until January 15, 2020.
The Company intends to use the net proceeds of the Offering for exploration and drilling at their Case Lake Project, as well as working capital and general corporate purposes.
All of the securities issued under the private placement are subject to a hold period expiring four months and one day from the date hereof.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any State in which such offer, solicitation or sale would be unlawful. The securities being offered have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the United States Securities Act of 1933, as amended, and applicable state securities laws.
About Power Metals Corp.
Power Metals Corp. is a diversified Canadian mining company with a mandate to explore, develop and acquire high quality mining projects. We are committed to building an arsenal of projects in both lithium and high-growth specialty metals and minerals. We see an unprecedented opportunity to supply the tremendous growth of the lithium battery and clean-technology industries.
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