Srg Graphite Inc. Announces Closing of $8,001,000 Marketed Unit Offering and Concurrent Private Placement of $2,000,000
SRG Graphite Inc.
1320 Graham, Suite 132
Ville Mont-Royal, Québec
H3P 3C8
PRESS RELEASE FOR IMMEDIATE RELEASE
NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR DISTRIBUTION TO U.S. NEWSWIRE
SERVICES
SRG GRAPHITE INC. ANNOUNCES CLOSING OF $8,001,000
MARKETED UNIT OFFERING AND CONCURRENT PRIVATE
PLACEMENT OF $2,000,000
Montreal, Quebec, May 18, 2018 – SRG Graphite Inc. (TSXV: SRG) (“SRG” or the
“Company”) is pleased to announce that it has closed its marketed public offering (the
“Offering”) through a syndicate of underwriters co-led by National Bank Financial Inc. and TD
Securities Inc. and including Macquarie Capital Markets Canada Ltd., Beacon Securities Limited
and Clarksons Platou Securities AS (collectively, the “Underwriters”). In connection with the
closing of the Offering, the Company issued 5,334,000 units of the Company (“Units”) at a price
of $1.50 per Unit for gross proceeds of $8,00 1,000. Each Unit is comprised of one common
share of the Company (a “Common Share”) and one Common Share purc hase warrant of the
Company (a “Warrant”). Each Warrant will entitle the holder thereof to acquire one a dditional
Common Share (each a “Warrant Share”) at an exercise price of $2.30 per Common Share at
any time for a period of 12 months from today.
In connection with the Offering, the Company paid to the Underwriters a cash fee of $480,060
and issued 320,040 broker warrants to the Underwriters, each such broker warrant entitling the
holder thereof to acquire one Common Share at an exercise price of $1.50 for a period of 12
months from today.
The Company has granted the Underwriter s an over -allotment option to purchase up to an
additional 15% of the Units sold pursuant to the Offering, exercisable in whole or in part at any
time for a period of 30 days from today. The over-allotment option may be exercised for Units,
Warrants or a combination thereof.
In addition, the Company has completed its previously announced concurrent non-brokered
private placement (the “Concurrent Private Placement”) with Coris Capital SA (“Coris”) pursuant
to which Coris subscribed for 1,333,333 units (the “Private Placement Units ”), which were
issued on the same terms and conditions as those issued pursuant to the Offering. The Private
Placement Units are subject to a statutory four month hold period in accordance with applicable
securities laws.
The Company intends to use the proceeds from the Offering and the Concurrent Private
Placement for advancement of the Company’s Lola graphite project, including, in the near term,
to further regional exploration and infill resource drilling and to progress towards a feasibility
study; for continued exploration of its Gogota cobalt-nickel-scandium project; and for general
working capital purposes.
The TSX Venture Exchange has conditionally approved the Offering and the Concurrent Private
Placement. Listing of Common Shares and Warrant Shares will be subject to the fulfillment by
the Company of the customary listing conditions of the TSX Venture Exchange. The Offering
was made pursuant to a short form prospectus dated May 11, 2018 (the “Prospectus”), filed in
each of the Provinces of Canada and available on SEDAR at www.sedar.com.
This news release does not constitute an offer to sell or a solicitation of an offer to buy any of
the securities in the United States. The securities have not been and will not be registered under
the United States Securities Act of 1933, as amended (the “U.S. Securities Act”) or any state
securities laws and may not be offered or sold within the United States or to U.S. Persons
unless register ed under the U.S. Securities Act and applicable state securities laws or an
exemption from such registration is available.
ABOUT SRG
SRG is a Canadian- based company focused on developing the Lola graphite deposit and the
Gogota cobalt-nickel-scandium deposit located in the Republic of Guinea, West Africa. SRG is
committed to operating in a socially, environmentally and ethically responsible manner.
For additional information, please visit SRG’s website at www.srggraphite.com.
For more information contact:
Ugo Landry-Tolszczuk
Tel: +1 (514) 679-4196
Email: [email protected]
Benoit La Salle, FCPA FCA
Tel: +1 (514) 951-4411
Email: [email protected]
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.
Forward-Looking Statements
This press release contains “forward -looking information” within the meaning of Canadian
securities legislation. All information contained herein that is not clearly historical in nature may
constitute forward- looking information. Generally, such forward- looking information can be
identified by the use of forward- looking terminology such as “reduce”, “suggest”, “opportunity”,
“demonstrate”, or variations of such words and phrases or state that cert ain actions, events or
results “may”, “could”, “would” or “might” occur. Forward-looking information is subject to known
and unknown risks, uncertainties and other factors that may cause the actual results, level of
activity, performance or achievements of the Company to be materially different from those
expressed or implied by such forward- looking information, including but not limited to: (i) the
Company’s use of proceeds of the Offering may differ from those indicated; ( ii) volatile stock
price; (iii) the general global markets and economic conditions; (iv) the possibility of write-downs
and impairments; ( v) the risk associated with exploration, development and operations of
mineral deposits; (vi) the risk associated with establishing title to mineral properties and assets;
(vii) fluctuations in commodity prices and other risks and factors described or referred to in the
sections entitled “Risk Factors” in the Annual Information Form of the Company and the
Prospectus available at www.sedar.com, all of which should be reviewed in conjunction with the
information found in this news release.
Forward-looking information is based on assumptions management believes to be reasonable
at the time such statements are made, including but not limited to, continued exploration
activities and no material adverse change in mineral prices. Although the Company has
attempted to identify important factors that could cause actual results to differ materially from
those contained in the forward-looking information, there may be other factors that cause results
not to be as anticipated, estimated or intended. There can be no assurance that such forward-
looking information will prove to be accurate, as actual results and future events could differ
materially from those anticipated in such forward- looking information. Such forward- looking
information has been provided for the purpos e of assisting investors in understanding the
Company's business, operations and exploration plans and may not be appropriate for other
purposes. Accordingly, readers should not place undue reliance on forward- looking information.
Forward-looking information is given as of the date of this press release, and the Company does
not undertake to update such forward- looking information except in accordance with applicable
securities laws.