District Metals Corp (CVE:DMX) (FRA:DFPP) has closed its previously announced brokered private placement financing, raising aggregate gross proceeds of $4.75 million to fund exploration at its flagship Tomtebo polymetallic project in Sweden.
The company issued 15.8 million units at a price of $0.30 per unit, including a $250,000 option exercised by the agent. Each unit consists of one District share and one-half of one warrant exercisable at C$0.42 for a two-year period following closing.
The financing contains an acceleration clause that is triggered if the volume-weighted average share price is equal to or more than C$0.70 for 10 consecutive trading days.
"District Metals is now fully funded for the upcoming 5,000-meter drill program at our high grade polymetallic Tomtebo Property located in the Bergslagen Mining District of south-central Sweden,” CEO Garrett Ainsworth said in a statement. “Our financing was heavily oversubscribed, exemplifying the enthusiasm towards the discovery potential at our high priority Tomtebo targets.”
In consideration for its services, the agent received a cash commission of $255,000 and was issued 850,000 compensation options, each entitling the holder to purchase one unit at a price of $0.30 for a period of 24 months from the date of issuance.
Further to a shareholder rights agreement entered into between the company and EMX Royalty Corp in connection with the acquisition of the Tomtebo and Trollberget properties in June 2020, EMX has been issued 219,756 common shares, which completes EMX's top-up right to maintain its proportionate shareholding in the company for no additional consideration.
Additionally, the company issued 33,610 shares to its consultant Vector Geological Solutions Inc. and its principal Daniel MacNeil. The company also granted 1.4 million stock options to directors, officers, employees and consultants of the company, in accordance with the provisions of its stock option plan. Each stock option is exercisable at C$0.46, its closing price on December 29.
Toronto-based District recently kicked off a ground gravity survey at Tomtebo in south-central Sweden — the first time such an exploration technique has been used at the property.
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