First Nordic Raises $2.7M Through Warrants and Options
First Nordic Raises $2.7M Through Warrants
and Options
VANCOUVER, BC
,
July 10, 2024
/CNW/ -
First Nordic Metals Corp.
(the
"Company"
or
"First
Nordic"
) (TSXV: FNM) (OTCQB: FNMCF) (FRA: HEG0) is pleased to announce the successful
completion of the Company's warrant exercise incentive program, as previously announced on
June
13, 2024
(the "Incentive Program"), as well as the exercise of additional Company warrants and
stock options, providing aggregate gross proceeds of
$2,703,157
to First Nordic Metals Corp.
Taj Singh
, President and CEO comments
:
"The exercise of these warrants and options is a
significant positive event as it strengthens our cash position and cleans up our capitalization
structure. In the last three weeks, approximately 7 million warrants were exercised by our
supportive shareholder base, allowing the Company to accelerate the advancement of its projects.
We believe First Nordic's project portfolio is unique, with its combination of grade, scale,
substantial growth potential, and great location in
Europe's
heartland of mining."
Incentive Program
A total of 6,301,273 common shares in the capital of the Company (each a "
Common Share
") were
issued upon the exercise of 6,301,273 outstanding share purchase warrants (the "
Outstanding
Warrants
") permitted to participate under the Incentive Program, providing gross proceeds of
$1,827,369
to the Company from the Incentive Program.
For every Outstanding Warrant exercised, the holders of such Outstanding Warrant received the one
Common Share to which they were otherwise entitled under the terms of the Outstanding Warrants
and one-half of one common share purchase warrant (each whole warrant, an "
Incentive
Warrant
"). Each Incentive Warrant allows the holder to acquire one Common Share at an exercise
price of
$0.40
for a period of two years following the date of the issuance of the Incentive Warrant.
A total of 3,150,631 Incentive Warrants were issued pursuant to the Incentive Program.
Holders of 7,689,579 Outstanding Warrants were eligible to participate in the Incentive Program. For
those holders of Outstanding Warrants who chose not to participate in the Incentive Program, such
Outstanding Warrants will remain outstanding and continue to be exercisable for Common Shares on
their current terms (including the amended exercise price of
$0.29
per Outstanding Warrant) until
their applicable expiry date, at which time any Outstanding Warrants that remain unexercised will
expire and be cancelled pursuant to their terms.
Insiders of the Company participated in the Incentive Program exercising 507,513 Outstanding
Warrants and were issued 253,756 Incentive Warrants. As a result, the Incentive Program may
constitute a "related party transaction" with-in the meaning of Multilateral Instrument 61-101 -
Protection of Minority Shareholders in Special Transactions ("
MI 61-101
"). The Company relies on
the exemptions from the formal valuation requirements of MI 61-101 contained in section 5.5(a) and
(b) of MI 61-101 on the basis that the fair market value of the transaction with insiders will not be
more than 25% of the market capitalization of the Company and no securities of the Company are
listed on a specified market set out in such section, and the Company further relies on the exemption
from the minority shareholder approval requirements of MI 61-101 contained in Section 5.7(1)(a) of
MI 61-101 on the basis of the fair market value of the transaction with insiders will not be more than
25% of the market capitalization of the Company.
The proceeds of the Incentive Program will be used for exploration and development of the
Company's projects and for working capital purposes.
The Incentive Warrants issued pursuant to the Incentive Program, and the Common Shares issuable
on exercise thereof, are subject to a hold period ending
November 9, 2024
. The Incentive Program
is subject to the final acceptance of the TSX Venture Exchange.
Additional Warrants and Stock Options
Since
mid-May 2024
, in addition to funding from the Incentive Program, First Nordic has raised
$698,500
from stock option exercises and an additional
$177,288
from the exercise of other
warrants not included in the Incentive Program.
Marketing Services
First Nordic also announces it has amended its previously announced agreement (
May 5, 2024
) with
RMK Marketing Inc. ("RMK") to increase its advertising budget by up to an additional
$250,000
. The
term of the agreement remains the same, six months commencing
May 5, 2024
. The Company will
not issue any securities to RMK as compensation for the services. As of the date hereof, to the
Company's knowledge, RMK (including its directors and officers) does not own any securities of the
Company and has an arm's-length relationship with the Company. RMK is an independent company
which will, as appropriate, provide project management and consulting for an on-line marketing
campaign, coordinate marketing actions, maintain and optimize adwords campaigns, adapt adwords
bidding strategies, optimize adwords ads, and create and optimize landing pages. The promotional
activity will occur by e-mail, Facebook and Google.
ABOUT FIRST NORDIC METALS
First Nordic's flagship is the Barsele gold project, located in
Sweden
and in a joint venture with
senior gold producer Agnico Eagle Mines Ltd. The Barsele project currently hosts a combined open
pit and underground NI 43-101 Indicated Resource of 324,000 ounces gold and an Inferred resource
of 2,086,000 ounces gold (2020, Technical Report and Mineral Resource Estimate for the Barsele
Property, InnovExplo). Immediately surrounding the Barsele project, First Nordic is the 100%-owner
of a district-scale license position of close to 100,000 hectares on both the prolific Gold Line and
Skellefte VMS belts. Additionally, in northern Finland First Nordic holds the entire underexplored
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 release contains "forward
looking information" or "forward-looking statements" within the
meaning of Canadian securities laws, which may include, but are not limited to statements relating
to receipt of TSXV acceptance of the Incentive Program and use of proceeds from the Incentive
Program. All statements in this release
,
other than statements of historical facts, that address
events or developments that the Company expects to occur, are forward-looking statements.
Forward-looking statements are statements that are not historical facts and are generally, but not
always, identified by the words "expects", "plans", "anticipates", "believes", "intends", "estimates",
"projects", "potential" and similar expressions, or that events or conditions "will", "would", "may",
"could" or "should" occur. Although the Company 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 may differ from those in the forward-looking
statements. Such forward-looking information reflects the Company's views with respect to future
events and is subject to risks, uncertainties and assumptions. Such factors include, among other
things: risks and uncertainties relating to exploration and development, the ability of the Company
to obtain additional financing, the need to comply with environmental and governmental
regulations, fluctuations in the prices of gold and other commodities, operating hazards and risks
inherent in the resource industry, competition and other risks and uncertainties, including those
described in the Company's financial statements and/or management discussion and analysis
available on
www.sedarplus.ca
The Company does not undertake to update forward
looking
statements or forward-looking information, except as required by law
.
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 07:00e 10-JUL-24