Nio Strategic Metals Closes Flow-Through Shares Private Placement to Advance Oka and Fafnir Explorations
Nio Strategic Metals Closes Flow-Through
Shares Private Placement to Advance Oka and
Fafnir Explorations
Montreal, Quebec--(Newsfile Corp. - December 18, 2024) - Nio Strategic Metals Inc. (TSXV: NIO) (OTC
Pink: NIOCF) ("
Nio
" or the "
Company
"), today announced that it has arranged a private placement (the
"
Private Placement
") of 5,483,333 flow-through common shares of the Company (the "
Flow-through
shares
") that will qualify as "flow-through shares" within the meaning of subsection 66(15) of the
Income
Tax Act
(Canada) for gross proceeds of approximately $329,000.
The Private Placement remains subject to final acceptance of the TSX Venture Exchange and the
Company's receipt of all necessary regulatory approvals. The offering is subject to a four-month hold
period from the date of issuance.
In connection with the Private Placement, the Company issued 187,500 finder's warrants (the "
Finder's
Warrants
") and paid commissions of $15,000. Each Finder's Warrant will entitle the holder, on exercise
thereof, to acquire one additional common share in the capital of the Company at a price of $0.08 per
share for a period of 24 months from the date of issuance.
The proceeds of the Private Placement will be used exclusively for qualifying Canadian Exploration
Expenditures (as such term is defined in the
Income Tax Act
(Canada) and section 359.1 of the
Taxation Act
(Québec), in conducting an exploration and mineral resource evaluation program on the
Oka and the Fafnir properties in Quebec to determine the existence, location, extent, and quality of the
niobium and other critical metals on these properties. Such proceeds will be renounced to the
subscribers with an effective date not later than December 31, 2025, in the aggregate amount of not less
than the total amount of gross proceeds raised from the Private Placement.
The Offering constitutes a Related Party Transaction (as the term is defined in Multilateral Instrument 61-
101 - Protection of Minority Security Holders in Special Transactions ("
MI 61-101
")) since insiders of the
Company did participate. The Company has relied on exemptions from the formal valuation and minority
shareholder approval requirements of MI 61-101 contained in sections 5.5(a) and 5.7(1)(a) of MI 61-101
in respect of the Offering as the fair market value (as determined under MI 61-101) of the Offering is
below 25% of the Company's market capitalization (as determined in accordance with MI 61-101).
This news release does not constitute an offer to sell or a solicitation of an offer to buy nor shall there be
any sale of any of the securities in any jurisdiction in which such offer, solicitation or sale would be
unlawful, including any of the securities in the United States of America.
About Nio Strategic Metals
Nio Strategic Metals is an exploration and development company, with a focus on becoming a
ferroniobium producer. The Company holds niobium properties located in Oka and near Mont-Laurier,
and Québec and another exploration property in the Province of Québec.
For more information on the Company, please refer to the Company's public documents available on
SEDAR (
www.sedarplus.ca
) or on the Company's website (
https://niostratmet.com/
) or contact:
Bruno
Dumais, Chief Financial Officer
514-560-7623
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 press
release.
Cautionary Statement on Forward-Looking Information
This news release contains forward-looking statements and forward-looking information (together,
"forward looking statements") within the meaning of applicable Canadian securities laws. Statements,
other than statements of historical facts, may be forward-looking statements. Generally, forward-
looking statements can be identified by the use of terminology such as "plans", "expects",
"estimates", "intends", "anticipates", "believes" or variations of such words, or statements that certain
actions, events or results "may", "could", "would", "might", "will be taken", "occur" or "be achieved", the
negative of these terms and similar terminology although not all forward-looking statement contains
these terms and phrases. Forward-looking statements involve risks, uncertainties and other factors
that could cause actual results, performance, prospects and opportunities to differ materially from
those expressed or implied by such forward-looking statements. These risks and uncertainties
include, but are not limited to, the risk factors set out in Nio Strategic Metals' annual and/or quarterly
management discussion and analysis and in other of its public disclosure documents filed on
SEDAR at
www.sedarplus.ca
,
as well as all assumptions regarding the foregoing. Although Nio
Strategic Metals believes that the assumptions and factors used in preparing the forward-looking
statements are reasonable, undue reliance should not be placed on these statements, which only
apply as of the date of this news release, and no assurance can be given that such events will occur in
the disclosed time frame or at all. Except where required by applicable law, Nio Strategic Metals
disclaims any intention or obligation to update or revise any forward-looking statement, whether as a
result of new information, future events or otherwise.
To view the source version of this press release, please visit
https://www.newsfilecorp.com/release/234300