Power Metals Corp. (TSX-V: PWM) (FRANKFURT: OAA1) (OTC: PWRMF) is pleased to announce that, further to its news release of May 30, 2018, it has completed a brokered private placement of 3,448,300 units at a price of $0.58 per Unit for gross proceeds of approximately $2,000,000. Eight Capital acted as agent for the Offering. Each Unit is comprised of one flow-through common share of the Company and one-half of one flow-through common share purchase warrant. Each Warrant will entitle the holder thereof to acquire one non-flow-through common share of the Company at a price of $0.85 until June 27, 2020.
The Offering was led by Eight Capital, pursuant to the terms of an agency agreement entered into by the Company and the Agent on June 27, 2018. Pursuant to the Agency Agreement, the Agent received a cash commission equal to 6% of the aggregate gross proceeds of the Offering and was granted compensation warrants in an amount equal to 6% of the number of Units issued pursuant to the Offering. Each compensation warrant is exercisable to purchase one unit comprised of one common share and one-half of one common share purchase warrant, at an exercise price of $0.58 until June 27, 2020.
The Company intends to use the gross proceeds of the Offering for exploration and drilling at its Case Lake Project, such exploration work to constitute qualified Canadian exploration expenses (as defined in the Income Tax Act (Canada)) with the expenses to be renounced for the 2018 taxation year.
All of the securities issued under the private placement are subject to a hold period expiring on October 28, 2018.
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.
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. It is committed to building an arsenal of projects in both lithium and high-growth specialty metals and minerals. It sees an unprecedented opportunity to supply the tremendous growth of the lithium battery and clean-technology industries.
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We acknowledge the [financial] support of the Government of Canada.