Grid Metals Corp. Announces Strategic Financing
Grid Metals Corp. Announces Strategic
Financing
Not for distribution to United States Newswire Services or for dissemination in the United States
Toronto, Ontario , August 22, 202 2 –Grid Metals Corp. (the " Company") (TSXV:GRDM) is pleased t o
announce a non-brokered private placement of securities of the Company to issue up to 56 million shares
of the company and raise gross proceeds of up to C$ 8,520,000 (the “Offering”). The Offering will include
cornerstone investments by AMCI - a globally diversified mining and investment group specializing in the
natural resource industry and Primero Group – a highly specialized engineering and operations company.
Churchill Strategic Investments Group Pty Ltd of Perth Australia will be an investor and will act as a finder
in the private placement.
“ With the electrification and decarbonization dynamic accelerating globally Grid Metals is looking to
meet its capital needs by aligning with strategic investors that will assist in not only providing capital but
industry expertise in the lithium and base metals sectors as well “ said Robin Dunbar President and CEO
of Grid. Dave Peck P.Geo and VP Exploration added “ We are focused on advancing our lithium assets
and nickel -copper PGM assets in southea stern Manitoba . In base metals we look to accelerate
exploration and development of our PEA stage Makwa Mayville Project . We are also looking to begin
exploration of our high potential mineral leases in northern Manitoba , where we have a camp scale
Raglan Nickel Belt nickel look alike target which is drill ready and a Nova Bollinger type nickel copper PGM
target where we will be completing an airborne EM survey later this fall. “
The Offering will be comprised of a combination of the following:
• Ordinary common shares of the Company (the "Shares") to be sold at a price of C$0.12 per Share;
and
• Charitable flow-through common shares of the Company (the “Charity Shares”) to be sold at a
price of C$0.21 per Charity Share.
Each Charity Share will be issued as a “flow-through share” within the meaning of the Income Tax Act
(Canada). The exact number of Shares and Charity Shares sold will be determined prior to the closing of
the Offering.
Churchill Strategic Investments Group Pty Ltd (“Churchill”) will be acting as finder in connection with the
majority of the Offering and will receive a cash finder ’s fee of 4% of the total gross proceeds from
subscribers introduced by Churchill . Churchill will also be entitled to receive finder ’s warrants in
connection with the Offering. Other qualified finders may also receive finder’s fees in cash and warrants
for subscribers introduced by such finders. The Charity Shares are being issued as part of a charity
arrangement structured by Peartree Securities Inc.
The net proceeds from the Shares will be used for exploration of the Company’s property portfolio in
Manitoba and Ontario and general working capital purposes. Proceeds from the sale of Charity Shares will
be used to incur "Canadian exploration expenses" as defined in subsection 66.1(6) of the Income Tax Act
that qualify for the federal 30% Critical Mineral Exploration Tax Credit announced in the federal budget
on April 7, 2022 and will be eligible for the 30% Manitoba Mineral Exploration Tax Credit ("Qualifying
Expenditures"). Such proceeds will be renounced to the subscribers with an effective date not later than
December 31, 2022, in the aggregate amount of not le ss than the total amount of gross proceeds raised
from the issue of Charity Shares.
The closing of the Offering is expected to occur on or about September 15, 2022 and is subject to receipt
of all applicable regulatory approvals, including approval of the TSX Venture Exchange. The Shares, Charity
Shares, and any ordinary c ommon shares issuable upon the exercise of finders’ warrants issued with
respect to the Offering will be subject to a hold period of four months and one day in accordance w ith
applicable securities laws.
The securities offered have not been registered under the U.S. Securities Act of 1933, as amended (the
"U.S. Securities Act"), or any applicable state securities laws, and may not be offered or sold to, or for the
account or benefit of, persons in the United States or "U.S. persons," as such term is defined in Regulation
S promulgated under the U.S. Securities Act, absent registration or an exemption from such 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 jurisdiction in which such offer, solicitation or sale would
be unlawful.
AMCI Group is a globally diversified mining and investment group specializing in the natural resource
industry. AMCI owns assets and businesses involved in the mining, processing, logistics and marketing of
several commodities including raw materials critical for the electrification economy. Today, AMCI maintains
a substantial presence in Australia and Canada with a large portion of its current investment portfolio located
in these key mining jurisdictions.
Australia based Managing Director Patrick Murphy noted that “Grid Metals represents an undervalued
opportunity in a tier one jurisdiction that is demonstrating increasing support for battery and critical mineral
extractive industries and Grid’s nickel and copper sulphide orebodies and lithium pegmatite ground is
prospective for further exploration success and ultimately successful mine development”.
Primero Group is a highly specialised engineering and operational company focussing on the assessment,
development and operations of minerals processing and energy projects globally. The company operates as
a subsidiary of the ASX listed NRW Holdings Group (ASX:NWH) with annual revenues more than AUD$2.5B.
With offices located in Montreal, Canada and Houston, USA and investments alongside AMCI Group in the
ASX listed Green Technology Metals in Ontario, Canada (ASX:GT1) the group is a complete project life cycle
development business that aligns with owners and project developers following investment through into
operations.
Primero Group Managing Director Cameron Henry stated ‘following our first successful investment into
Canada in battery materials with ASX:GT1, alongside AMCI Group this opportunity in Grid Metals makes
sense to continue our exposure to the North American supply constrained market for future facing metals.
The nickel and lithium assets that Grid possess in their portfolio have significant potential for development
and make a lot of sense with their strategic locality in the region. We look forward to working with the Grid
team and creating more value for current and incoming shareholders.’
About Grid Metals Corp.
Grid Metals Corp. is an exploration and development Company that has a diversified portfolio of projects
focused on nickel-copper-platinum group metals and lithium. Grid’s projects are located in the provinces
of Manitoba and Ontario Canada. The Company is focused on timely advancement of its property
portfolio through prudent exploration and development activities. To find out more about Grid Metals
Corp., please visit www.gridmetalscorp.com.
On Behalf of the Board of Grid Metals Corp.
Robin Dunbar - President, CEO & Director Telephone: 416-955-4773 Email: [email protected]
David Black - Investor Relations Email: [email protected]
Dave Peck, P.Geo., has reviewed the contents of this press release and is the qualified person for purposes
of National Instrument 43-101.
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.
We seek safe harbour. This news release contains forward-looking statements within the meaning of the
United States Private Securities Litigation Reform Act of 1995 and forward-looking information within the
meaning of the Securities Act (Ontario) (together, "forward-looking statements"). Such forward -looking
statements may include the Company's plans for its properties, the overall economic potential of its
properties, the availability of adequate financing and involve known and unknown risks, uncertainties and
other factors which may cause the actual results, performance or achievements expressed or implied by
such forward- looking statements to be materially different. Such factors include, among others, risks and
uncertainties relating to potential political risk, uncertainty of production and capital costs estimates and
the potential for unexpected costs and expenses, physical risks inherent in mining operations,
metallurgical risk, currency fluctuations, fluctuations in the price of nickel, cobalt, copper and other
metals, completion of economic evaluations, changes in project parameters as plans continue to be
refined, the inability or failure to obtain adequate financing on a timely basis, and other risks and
uncertainties, including those described in the Company's Management Discussion and Analysis for the
most re cent financial period and Material Change Reports filed with the Canadian Securities
Administrators and available at www.sedar.com.