Global Energy Metals Corporation (CVE:GEMC ) (OTCMKTS:GBLEF) (FRA:5GE1) has said it will close the first tranche of its non-brokered private placement financing, raising gross proceeds of $870,000 and issuing 3,480,000 units, subject to TSX Venture Exchange approval.
Following a significant investment in the company by two New York-based institutional investment management firms, Global Energy Metals amended the terms of its previously announced financing to increase the size of the offering to allow for up to gross proceeds of $1,000,000 consisting of 4,000,000 units. The company said it is anticipated that a second tranche of the offering will follow in the next few days.
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Each unit in the offering consists of one common share of the company and one transferable common share purchase warrant, with each warrant exercisable to purchase an additional share of the company for a period of 24 months from the closing date at a price of C$0.30, subject to acceleration.
The net proceeds of the offering will be used for general working capital and business development initiatives, acquisition of a 50% interest in copper-silver-gold and copper, nickel, cobalt, PGE properties in Idaho, USA and Quebec, Canada, as well as for exploration drilling activities at its Nevada, USA projects.
In connection with the offering, Mitchell Smith, president, CEO and director of Global Energy Metals Corporation will participate as to the amount of $50,000.
No finder’s fees will be issued in connection with the first tranche closing. The company may pay finders' fees to eligible parties that have assisted by introducing subscribers to the placement.
All securities to be issued pursuant to the offering will be subject to a four-month hold period from the closing date under applicable securities laws in Canada and among other things, receipt by Global Energy Metals of all necessary regulatory approvals, including the TSX Venture Exchange.
Warrants are subject to an acceleration clause whereby if on any 10 consecutive trading days occurring after four months and one day has elapsed from the closing date, the daily volume-weighted average trading price of the common shares of the company is at least $0.50 per share, the company may accelerate the expiry date of the warrants to the 30th day after the date on which it gives notice to the subscriber in accordance with the warrant of such acceleration.
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