European Energy Announces Closing of First Tranche of Private Placement
European Energy Announces Closing of First
Tranche of Private Placement
Vancouver, British Columbia--(Newsfile Corp. - September 10, 2024) - European Energy Metals Corp.
(TSXV: FIN) ("
European Energy
" or the "
Company
") is pleased to announce that it has closed it's the
first tranche (the "
First Tranche
") of its previously announced non-brokered private placement (the
"
Private Placement
") of up to 17,600,000 units ("
Units
") at a price of $0.125 per Unit to raise gross
proceeds of up to $2,200,000. Pursuant to the First Tranche, the Company has issued 15,795,000 Units
for total gross proceeds of $1,974,375.
Each Unit consists of one common share (a "
Share
") and one-half of a common share purchase warrant
(each whole warrant, a "
Warrant
"). Each Warrant is exercisable for one additional Share at an exercise
price of $0.20 until September 9, 2026.
In connection with the First Tranche, the Company has paid Leede Financial Inc. a cash commission of
$131,118.75 and has also issued 1,157,000 Shares and 239,050 non-transferable broker warrants
(having the same terms as the Warrants) to Leede Financial Inc. as compensation.
All securities issued pursuant to the First Tranche are subject to a statutory hold period of four months,
expiring on January 9, 2025. The Company intends to use the net proceeds of the Private Placement for
exploration work on its properties and for working capital.
Insiders of the Company have subscribed for 580,000 Units in the First Tranche. The issuance of the
Units to the insiders pursuant to the Private Placement (the "
Insider Participation
") is considered to be
a related party transaction within the meaning of TSX Venture Exchange Policy 5.9 and Multilateral
Instrument 61-101 -
PROTECTION OF MINORITY SECURITY HOLDERS IN SPECIAL
TRANSACTIONS
("
MI 61-101
"). The Company intends to rely on the exemptions from the valuation and
minority shareholder approval requirements of MI 61-101 contained in Sections 5.5(b) and 5.7(1)(a) of
MI 61-101, respectively, in respect of the Insider Participation.
Subject to the approval of the TSX Venture Exchange, the Company intends to complete the final tranche
of the Private Placement within the next week.
About European Energy Metals Corp.
European Energy Metals Corp. is a junior mining company currently focused on the lithium-cesium-
tantalum Finnish pegmatite project in central Finland. Governing bodies in Europe and Finland are
legislating environmentally friendly and energy-independent laws and policies. One of the key
components is access to REE (rare earth elements) and, specifically, lithium. The Company's
concessions are located within 15 kilometres of the Keliber mine and production complex, currently
under construction and expected to begin production in the second half of 2025. The Company cautions
the presence of lithium mineralization on Keliber's properties is not necessarily indicative of similar
mineralization on the
Company's mineral reservations.
An estimated 600-million-euro investment by Keliber's parent company, Sibanye-Stillwater Ltd., in
partnership with the Finnish Minerals Group, is under way in the Kautinen region, and will see the
development of open-pit and underground mining from several deposits, construction of a central
spodumene concentrator plant, and a lithium hydroxide chemical plant at tidewater in Kokkola. When
completed, this complex will comprise a complete hard-rock spodumene pegmatite lithium supply chain.
FOR FURTHER INFORMATION, PLEASE CONTACT:
Jeremy Poirier, CEO
Telephone: 604-722-9842
Neither the 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 Statements Regarding Forward-Looking Information
This news release contains forward-looking information within the meaning of applicable securities
legislation. Forward-looking information is typically identified by words such as: believe, expect,
anticipate, intend, estimate, postulate and similar expressions, or are those, which, by their nature,
refer to future events. Such statements include, without limitation, statements regarding the regarding
completion of the final tranche of the Private Placement, the use of proceeds of the Private
Placement, future results of operations, performance and achievements of the Company, including
the presence of lithium mineralization at, and the
exploration and development potential of, the
Finnish Pegmatite. Although the Company believes that such statements are reasonable, it can give
no assurances that such expectations will prove to be correct. All such forward-looking information is
based on certain assumptions and analyses made by the Company in light of their experience and
perception of historical trends, current conditions and expected future developments, as well as other
factors management believes are appropriate in the circumstances. This information, however, is
subject to a variety of risks and uncertainties and other factors that could cause actual events or
results to differ materially from those projected in the forward-looking information. Important factors
that could cause actual results to differ from this forward-looking information include the Company's
ability to find suitable investors for the final tranche of the Private Placement or to obtain the approval
of the TSX Venture Exchange, management's discretion to reallocate the proceeds of the Private
Placement as well as risks inherent in exploration as well as those described under the heading
"Risks and Uncertainties" in the Company's most recently filed MD&A. The Company does not
intend, and expressly disclaims any obligation to, update or revise the forward-looking information
contained in this news release, except as required by law. Readers are cautioned not to place undue
reliance on forward-looking information.
To view the source version of this press release, please visit
https://www.newsfilecorp.com/release/222748