Clean AIR Metals Announces Closing of $12.5 Million Private Placement ON Strong Institutional Support
CLEAN AIR METALS ANNOUNCES CLOSING
OF $12.5 MILLION PRIVATE PLACEMENT ON
STRONG INSTITUTIONAL SUPPORT AND
INCLUDING MICHAEL GENTILE, CFA
/ NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES
OR FOR DISSEMINATION IN
THE
UNITED STATES
/
THUNDER BAY, ON
,
Feb. 23, 2022
/CNW/ -
Clean Air Metals Inc.
("
Clean Air Metals
" or the
"
Company
") (TSXV: AIR) (OTCQB: CLRMF) (FRA: CKU) is pleased to announce that it has closed
the previously announced best efforts private placement for total proceeds of approximately
$12.5
million
(the "
Offering
"), consisting of (i) 23,150,400 flow-through units ("
FT Units
"), of which
10,869,600 were issued at a price of
$0
.23 per FT Unit (the "
FT Issue Price"
) and 12,280,800 at a
price of
$0.285
(the "
Premium
FT Issue Price"
), and (ii) 32,250,000 non-flow-through units
("
Units
") at a price of
$0.20
per Unit (the "
Unit Issue Price
"). In connection with the Offering,
Paradigm Capital Inc. acted as sole bookrunner and lead Agent (the "
Lead Agent
"), on behalf of a
syndicate including Beacon Securities Inc., Echelon Wealth Partners Inc., and Hannam & Partners
(collectively, the "
Agents
").
Each FT Unit consists of one common share of the Company and one common share purchase
warrant (each, a "
Warrant
") that each qualify as a flow-through share (within the meaning of
subsection 66(15) of the
Income Tax Act
(
Canada
)). Each Unit consists of one non-flow-through
common share of the company and one non-flow-through Warrant. Each Warrant entitles the holder
thereof to acquire one common share of the Company at a price of
$0.25
for a period of 2 years
following the closing of the Offering.
Michael Gentile
, a leading strategic investor in the junior mining sector, purchased
$1.65 million
of
the Units as part of the Offering.
The Company will use an amount equal to the gross proceeds received by the Company from the
sale of the FT Units to incur eligible "Canadian exploration expenses" that will qualify as "flow-
through mining expenditures" as such terms are defined in the
Income Tax Act
(
Canada
) (the
"
Qualifying Expenditures
") related to the Company's projects in
Ontario
. All Qualifying
Expenditures will be renounced in favour of the subscribers of the FT Units effective
December 31,
2022
.
As consideration for their services in connection with the Offering, the Agents received: (a) a cash
commission equal to
$738,242.16
; and (b) 2,733,520 compensation options (the "
Compensation
Options
"). Each Compensation Option is exercisable to acquire one common share of the
Company, issued on a non-flow through basis (each, a "
Compensation Option Share
") at a price
of
$0.20
per Compensation Option Share for a period of 2 years following the closing of the
Offering.
The securities offered have not been registered under the U.S. 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. 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.
Management Comments
Abraham Drost
, CEO of Clean Air Metals stated that, "We are very pleased to confirm the
successful closing of the financing announced
January 31, 2022
. We very much appreciate the
support of existing shareholders and are pleased to add new investors as well, including Mr.
Michael
Gentile
, a noted strategic investor in the space.
Drilling with two drills has recommenced at the Escape Lake deposit and on massive sulphide target
"E" at the base of the Escape intrusion. The program in 2022 will be focused on systematic infill
drilling to upgrade the less than 15% Inferred mineralization within the PEA mine plan. Drilling since
the last mineral resource update on
January 20, 2021
and continuing into 2022 is targeted to add
additional tonnage and grade to the Escape deposit.
Followup work to the PEA mine plan will be based on Phase 3 metallurgical test work on drill-derived
mini bulk samples by Blue Coast Research in
Victoria, BC
. Systematic metallurgical test work is
through each year of the PEA mine plan, determining the potential to improve Nickel grades in
concentrate and add Rhodium and Cobalt as payables.
The Company is also testing a number of promising geophysical targets in the search for the source
of massive sulphide mineralization that has been documented in both Current and Escape deposits."
About Clean Air Metals
Clean Air Metals' flagship asset is the 100% owned, high grade Thunder Bay North Project, a
platinum, palladium, copper, nickel project located near the
City of Thunder Bay, Ontario
and the Lac
des Iles Mine owned by Impala Platinum. The Thunder Bay North Project hosts twin magma conduit
bodies which host Current and Escape deposits forming the basis for a positive preliminary
economic assessment on a 10-year ramp access underground mine plan with NI 43-101 compliant
technical report filed on SEDAR
January 12, 2022
and available on the Clean Air Metals website.
Executive Chair
Jim Gallagher
and CEO
Abraham Drost
lead an experienced team of geologists and
engineers who are using the Norilsk magma conduit stratigraphic and mineral deposit model to guide
ongoing exploration and development studies at Thunder Bay North. As the former CEO of North
American Palladium Ltd. which owned the Lac des Iles Mine prior to the sale to Impala Platinum in
December 2019
,
Jim Gallagher
and team are credited with the mine turnaround and creation of
significant value for shareholders.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined
in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
Cautionary Note Regarding Forward-Looking Information
The information contained herein contains "forward-looking statements" within the meaning of
applicable securities legislation. Forward-looking statements relate to information that is based on
assumptions of management, forecasts of future results, and estimates of amounts not yet
determinable. Any statements that express predictions, expectations, beliefs, plans, projections,
objectives, assumptions or future events or performance are not statements of historical fact and
may be "forward-looking statements." Forward-looking statements in this press release include
statements related to the TSXV approval, use of proceeds of the Offering, tax treatment of the flow-
through shares and flow-through units, and renunciation of the Qualifying Expenditures are subject to
a variety of risks and uncertainties which could cause actual events or results to differ from those
reflected in the forward-looking statements, including, without limitation: risks related to, risk related
to the failure to obtain adequate financing on a timely basis and on acceptable terms; risks related to
the outcome of legal proceedings; political and regulatory risks associated with mining and
exploration; risks related to the maintenance of stock exchange listings; risks related to
environmental regulation and liability; the potential for delays in exploration or development activities
or the completion of feasibility studies; the uncertainty of profitability; risks and uncertainties relating
to the interpretation of drill results, the geology, grade and continuity of mineral deposits; risks
related to the inherent uncertainty of production and cost estimates and the potential for unexpected
costs and expenses; results of prefeasibility and feasibility studies, and the possibility that future
exploration, development or mining results will not be consistent with the Company's expectations;
risks related to commodity price fluctuations; and other risks and uncertainties related to the
Company's prospects, properties and business detailed elsewhere in the Company's disclosure
record. Should one or more of these risks and uncertainties materialize, or should underlying
assumptions prove incorrect, actual results may vary materially from those described in forward-
looking statements. Investors are cautioned against attributing undue certainty to forward-looking
statements. These forward-looking statements are made as of the date hereof and the Company
does not assume any obligation to update or revise them to reflect new events or circumstances,
except in accordance with applicable securities laws. Actual events or results could differ materially
from the Company's expectations or projections.
SOURCE
Clean Air Metals Inc.
View original content:
http://www.newswire.ca/en/releases/archive/February2022/23/c3637.html
%SEDAR: 00005465E
For further information:
Abraham Drost, Chief Executive Officer of Clean Air Metals Inc., Phone:
807-252-7800, Email: [email protected], Website: www.cleanairmetals.ca
CO: Clean Air Metals Inc.
CNW 13:10e 23-FEB-22