Global Energy Metals Corporation (CVE:GEMC) (OTCQB:GBLEF) has closed on the first tranche of private placement that raised $503,250 to advance its battery metals development aims in Nevada.
In a statement Tuesday, the company added that it will raise an additional $100,000 in a second and final tranche. GEMC upped the offering from 4 million to 4.8 million units.
The company plans to use the net proceeds to fund its previously announced acquisition of an 85% interest in the Lovelock and Treasure Box projects, two highly prospective battery mineral projects in Nevada with strong enrichment in nickel, copper and cobalt. The money also would fund business development and working capital purposes.
READ: Global Energy Metals begins strategic review of its portfolio of battery metals assets to maximize shareholder value
Under the placement, GEMC is offering the units at $0.125 apiece. Each unit is comprised of one share and one purchase warrant exercisable to purchase an additional share for a period of 36 months from the closing date at a price of $0.15.
The company said it had received strong interest in the offering with a strategic lead commitment of $200,000. All securities to be issued pursuant will be subject to a four month hold period from the closing date.
The financing complements the recently announced commitment by Electric Royalties Ltd that provides GEMC with an attractive form of financing and short-term investments via the spin-out of a small royalty on its Queensland, Australia, projects.
The royalty also provides an option to fund future development at Millennium and the Mount Isa projects in a non-dilutive manner to the company and create an opportunity for cross marketing promotion with a strong royalty partner.
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