E-Tech Resources Inc. Closes Private Placement of $600,000
E-Tech Resources Inc. Closes Private
Placement of $600,000
Halifax, Nova Scotia--(Newsfile Corp. - August 1, 2024) - E-Tech Resources Inc. (TSXV: REE) (FSE:
K2I) ("
E-Tech
" or the "
Company
") is pleased to announce the closing of its previously announced
private placement of 12,000,000 units (each, a "
Unit
") at $0.05 per Unit. Each Unit consists of one
common share of E-Tech (a "Common Share") and one-half common share purchase warrant (each
whole warrant, a "
Warrant
") for gross proceeds of $600,000 (the "
Financing
").
Each Warrant entitles
the holder to acquire one Common Share of E-Tech at an exercise price of $0.10 per share for a period
of 24 months from closing. The proceeds from the private placement will be used to support the
Company's ongoing exploration and operational activities as well as for general working capital
purposes.
Numus Capital Corp., a registered Exempt Market Dealer, acted as agent for the Financing. In
connection with the private placement, E-Tech paid the agent cash commissions of $24,500 and
490,000 broker warrants. Each broker warrant entitles the holder to acquire one Common Share at an
exercise price of $0.10 and is exercisable for a period of 24 months from closing.
Directors and an officer of the Company subscribed for 1,800,000 Units. There has not been a material
change in the percentage of the outstanding securities of the Company that are owned by each of these
individuals.
Wade Dawe, an Insider of the Company and a related party to the Company, subscribed for
3,200,000 Units. The percentage of outstanding securities owned or controlled by Wade Dawe
increased from 13.97% to 15.4%.
The engagement of Numus Capital Corp., and the subscription by Insiders of the Company outlined
below pursuant to the Financing constitute Related Party Transactions under
Multilateral Instrument 61-
101 Protection of Minority Security Holders in Special Transactions
("
MI 61-101
"). E-Tech has relied
upon an exemption for formal valuation and minority shareholder approval required under sections 5.5(a)
and 5.7(1)(a) of MI 61-101 on the basis that any related party elements of such transactions would not
exceed 25% of market capitalization of E-Tech. The Financing was unanimously approved by all
members of the board of directors of the Company not in a declared conflict of interest.
The Financing remains subject to final approval of the TSXV. All securities issued pursuant to the
Financing will be subject to a hold period lasting four-months and one day from the closing.
About E-Tech Resources Inc.
E-Tech is a rare earth exploration and development company focused on developing its Eureka Rare
Earths Project in Namibia. The Eureka project is located approximately 250 km north-west of Namibia's
capital city Windhoek and 140 km east of Namibia's main industrial port Walvis Bay. The project is
crossed by the national B1 highway and right next to the main national railroad line.
The Eureka project lies in the Southern Central Zone of the Neoproterozoic Damara Belt within Exclusive
Prospecting License ("EPL") number EPL 6762, which covers farms Eureka 99 and Sukses 90. E-Tech
has also entered into a definitive agreement to acquire an 85% interest in EPL 8748, which lies adjacent
to and surrounds the Company's EPL 6762.
Namibia is recognized as one of Africa's most politically stable jurisdictions, with an extremely well-
established national infrastructure and a clear and transparent mining law.
Cautionary Statements
This press release may contain forward-looking information, such as statements regarding the
Financing. This information is based on current expectations and assumptions (including assumptions
relating to general economic and market conditions) that are subject to significant risks and uncertainties
that are difficult to predict. Actual results may differ materially from results suggested in any forward-
looking information. E-Tech does not assume any obligation to update forward-looking information in this
release, or to update the reasons why actual results could differ from those reflected in the forward-
looking information unless and until required by securities laws applicable to E-Tech. Additional
information identifying risks and uncertainties is contained in the filings made by E-Tech with Canadian
securities regulators, which filings are available at www.sedarplus.com.
Neither 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.
For further information, please contact Chris Drysdale, Interim CEO of E-Tech Resources Inc.,
at +264 81 220 2439.
To view the source version of this press release, please visit
https://www.newsfilecorp.com/release/218584