Imetal Closes Initial Tranche of Private Placement
iMETAL CLOSES INITIAL TRANCHE OF PRIVATE PLACEMENT
VANCOUVER, British Columbia, October 1st, 2020 – iMetal Resources Inc. (TSX.V: IMR)
(OTCBB: ADTFF) (FRANKFURT: A7V2) (“iMetal” or the “Company”) is pleased to announce
that it has closed an initial tranche of its non-brokered private placement through the issuance
of 16,281,272 units (each, a “Unit”) at a price of $0.11 per Unit for gross proceeds of $1,790,940.
Each “Unit” consists of one common share of the Company, and one common share purchase
warrant (each, a “Warrant”) exercisable to acquire an additional common share of the Company
at a price of $0.20 until September 30, 2022.
The Company intends to complete a further tranche of the placement for up to 8,718,728 units,
to raise a total of $2,750,000. The Company anticipates utilizing the proceeds of the placement
to finance a drill program at its flagship Gowganda West property, and for general working capital
purposes.
In connection with completion of the initial tranche of the placement, the Company paid $69,195
and issued 629,040 Warrants to certain arms-length third-parties who assisted by introducing
subscribers to the placement. Finders’ fees or commissions to eligible parties in connection with
a further tranche of the placement. All securities issued in connection with completion of the
initial tranche of the placement are subject to a statutory hold period until February 1, 2021 in
accordance with applicable securities laws. Completion of a further tranche of the placement
remains subject to the approval of the TSX Venture Exchange.
The initial tranche of the placement included subscriptions from directors and officers of the
Company for an aggregate of 4,202,700 Units. The issuance of Units to directors and officers
of the Company, pursuant to the placement, are considered related party transactions 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 relied upon
exemptions from the formal valuation and minority approval requirements in sections 5.5(a) and
5.7(1)(a) of MI 61-101 in respect of insider participation, as neither the fair market value of, nor
the fair market value of the consideration for, the placement, insofar as it involves directors and
officers of the Company, exceed twenty-five percent of the market capitalization of the Company.
ON BEHALF OF THE BOARD OF DIRECTORS,
Johan Grandin
Chief Executive Officer
iMetal Resources Inc.
Tel. (604-739-9713)
588-580 Hornby St., Vancouver, BC, V6C 3B6.
https://imetalresources.ca
Neither 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.
This news release may include forward-looking statements that are subject to risks and uncertainties. All statements within, other than
statements of historical fact, are to be considered forward looking. 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 or developments may differ materially from those in forward-looking statements. Factors that could cause actual results to differ
materially from those in forward-looking statements include market 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. We do not assume any obligation to update any forward-looking statements
except as required under the applicable laws.