First Nordic Closes C$11.5 Million Oversubscribed Bought Deal Private Placement
FIRST NORDIC CLOSES C$11.5 MILLION
OVERSUBSCRIBED BOUGHT DEAL PRIVATE
PLACEMENT
/ NOT FOR DISTRIBUTION TO
UNITED STATES
NEWSWIRE SERVICES OR FOR
DISSEMINATION IN
THE UNITED STATES
/
VANCOUVER, BC
,
Nov. 26, 2024
/CNW/ -
First Nordic Metals Corp.
(the "
Company
" or "
FNM
")
(TSX.V: FNM, OTCQB: FNMCF, Germany: HEG0) is pleased to announce that it has closed its
previously announced "bought deal" private placement offering (the "
Offering
") for aggregate gross
proceeds of
C$11,500,368
, including the exercise in full of the option granted to the Underwriters (as
more particularly described in the news release of the Company dated
October 30, 2024
). The
Offering consisted of the issuance of 34,849,600 units of the Company (the "
Offered Units
") at a
price of
C$0.33
per Offered Unit (the "
Issue Price
").
Haywood Securities Inc. ("
Haywood
"), as lead underwriter and sole bookrunner, together with
Ventum Financial Corp. (together with
Haywood
, the "
Underwriters
") acted as underwriters of the
Offering.
Each Offered Unit consists of one common share in the capital of the Company and one-half of one
common share purchase warrant of the Company (each whole purchase warrant, a "
Warrant
").
Each Warrant entitles the holder thereof to acquire one common share in the capital of the Company
at a price of
C$0.45
for a period of 24 months from the closing date of the Offering.
The net proceeds from the sale of the Offered Units will be used by the Company for exploration at
its Gold Line Belt projects in northern
Sweden
, and for general working capital and corporate
purposes.
All securities issued under the Offering are subject to a hold period in
Canada
expiring four months
and one day from the closing date of the Offering. The Offering remains subject to the final
acceptance of the TSX Venture Exchange (the "
Exchange
").
In consideration for its services, the Company (i) paid the Underwriters a cash commission equal to
6.0% of the gross proceeds from the Offering (other than in respect of the gross proceeds raised
from the issuance of Offered Units to a certain institutional investor, for which a reduced commission
of 3.0% was paid), and (ii) issued to the Underwriters that number of non-transferable compensation
options (the "
Compensation Options
") as is equal to 6.0% of the aggregate number of Offered
Units sold under the Offering. Each Compensation Option is exercisable to acquire one common
share of the Company at a price equal to the Issue Price for a period of 24 months from the closing
date of the Offering.
Certain insiders of the Company subscribed for a total of 1.6 million Offered Units under the
Offering. Each subscription by an insider of the Company is considered to be a "related party
transaction" of the Company within the meaning of Exchange Policy 5.9 –
Protection of Minority
Security Holders in Special Transactions
and Multilateral Instrument 61-101 –
Protection of Minority
Security Holders in Special Transactions
("
MI 61-101
"). The Company is exempt from the formal
valuation requirement in Section 5.4 of MI 61-101 in reliance on Section 5.5(a) of MI 61-101 as the
fair market value of the Offering, insofar as it involves interested parties, is not more than the 25%
of the Company's market capitalization. Additionally, the Company is exempt from the minority
shareholder approval requirement in Section 5.6 of MI 61-101 in reliance on Section 5.7(a) insofar
as the fair market value of the Offering, insofar as it involves interested parties, is not more than
25% of the Company's market capitalization. The Company did not file a material change report
more than 21 days before the closing of the Offering because the details of the insider participation
were not finalized until closer to the closing and the Company wished to close the Offering as soon
as practicable for sound business reasons.
The Offered Units 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 news 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.
ABOUT FIRST NORDIC METALS
The Company's flagship asset is the Barsele gold project, located in northern
Sweden
and in a joint
venture with senior gold producer Agnico Eagle Mines Limited. Immediately surrounding the Barsele
project, FNM is the 100%-owner of a district-scale license position of close to 100,000 hectares on
Gold Line Belt. Additionally, in northern Finland FNM is the 100%-owner of a district-scale position
covering the entire Oijärvi Greenstone Belt.
ON BEHALF OF THE BOARD OF DIRECTORS
Taj Singh
, M.Eng, P.Eng, CPA
President & CEO, Director
Follow First Nordic Metals:
Twitter: @fnmetals
Youtube: @firstnordicmetalscorp
LinkedIn: @firstnordicmetals
Facebook: @FirstNordicMetals
Instagram: @firstnordicmetals
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in
policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this
release.
Cautionary Note Regarding Forward-Looking Statements:
This news release may include forward-looking statements that are subject to inherent risks and
uncertainties, including statements with respect to the Offering, the intended use of proceeds of the
Offering, and the ability to obtain final Exchange approval in respect of the Offering. All statements
within this news release, other than statements of historical fact, are to be considered forward
looking. Although First Nordic believes the expectations expressed in such forward-looking
statements are based on reasonable assumptions, such statements are not guarantees of future
performance and actual results or developments may differ materially from those described in
forward-looking statements. Factors that could cause actual results to differ materially from those
described in forward-looking statements include fluctuations in market prices, including metal prices,
continued availability of capital and financing, and general economic, market or business conditions.
There can be no assurances that such statements will prove accurate and, therefore, readers are
advised to rely on their own evaluation of such uncertainties. Subject to applicable securities laws,
the Company does not assume any obligation to update or revise the forward-looking statements
contained herein to reflect events or circumstances occurring after the date of this news release.
SOURCE
First Nordic Metals Corp.
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For further information:
For further information contact: Alicia Ford, Business Development
Manager, Phone: 604-687-8566, Email: [email protected]
CO: First Nordic Metals Corp.
CNW 09:00e 26-NOV-24