Volta Announces Closing of Private Placement
Volta Announces Closing of Private Placement
Toronto, Ontario--(Newsfile Corp. - June 16, 2025) -
Volta Metals Ltd.
(CSE: VLTA) (FSE: D0W)
("
Volta
" or the "
Company
") is pleased to announce that it has closed its previously announced non-
brokered private placement (the "
Offering
") by issuing 13,260,700 units of the Company (the "
Units
") at
a price of $0.05 per Unit for aggregate gross proceeds of $663,035 on June 13, 2025.
Each Unit consists of one common share of the Company (each, a "
Share
") and one half of one
common share purchase warrant of the Company (each whole warrant, a "
Warrant
"), with each Warrant
entitling the holder thereof to purchase an additional Share of the Company (a "
Warrant Share
") at an
exercise price of $0.10 per Warrant Share for a period of 24 months from the closing of the Offering.
The Company will use the net proceeds from the Offering to close the acquisition of the Springer
advanced Rare Earth and Gallium Project (see the February 27, 2025 and June 10, 2025 press
releases), initiate exploration work on Company's mineral properties, and for general corporate and
working capital purposes.
As in every financing the Company has completed to date, certain directors and officers of the Company
(the "
Insiders
") have participated in the Offering, increasing insider holdings. The issuance of the Units
to the Insiders constitutes a "related party transaction" within the meaning of Multilateral Instrument 61-
101 -
Protection of Minority Security Holders in Special Transactions
("
MI 61-101
"). The Company is
relying on an exemption from the formal valuation and minority shareholder approval requirements
provided under MI 61-101 pursuant to section 5.5(a) and section 5.7(1)(a) of MI 61-101, on the basis that
the participation in the Offering by the Insiders does not exceed 25% of the fair market value of the
Company's market capitalization.
The securities issued under the Offering are subject to a statutory hold period in Canada of four months
and a day from the date of issuance in accordance with applicable securities laws. The closing of the
Offering is subject to the receipt of all required regulatory approvals, including the approval of the
Canadian Securities Exchange (the "CSE").
Debt Settlement
The Company also announced that it has agreed to complete a debt settlement with certain directors of
the Company pursuant to which the directors will convert an aggregate of $118,666.60 fees owed to
them for 2,373,332 Units and a deemed price of $0.05 per Unit (the "
Debt Settlement
"). The Units are
the same as the Units issued under the Offering, and will be comprised of one Share and one half of one
Warrant, with each Warrant exercisable for one Share at a price of $0.10 per Share for a period of two
years from the date of issuance. The Company has elected to settle the indebtedness through the
issuance of Common Shares to preserve cash and strengthen the Company's balance sheet.
The securities issued pursuant to the Debt Settlement shall be subject to a four-month plus one day hold
period commencing on the day of the closing of the Debt Settlement, as applicable, under applicable
Canadian securities laws. The Debt Settlement is subject to certain conditions including, but not limited
to, the receipt of all necessary regulatory and other approvals including the approval of the CSE.
The Debt Settlement will constitute a "related party transaction" within the meaning of Multilateral
Instrument 61-101 -
Protection of Minority Security Holders in Special Transactions
("
MI 61-101
"). The
Company expects to rely on an exemption from the formal valuation and minority shareholder approval
requirements provided under MI 61-101 pursuant to section 5.5(a) and section 5.7(1)(a) of MI 61-101, on
the basis that the Debt Settlement does not exceed 25% of the fair market value of the Company's
market capitalization.
ABOUT VOLTA METALS LTD.
Volta Metals Ltd. (CSE: VLTA) (FSE: D0W)
is a mineral exploration company based in Toronto,
Ontario, focused on rare earths, gallium, lithium, cesium, and tantalum. It owns, has optioned and is
currently exploring a critical minerals portfolio of rare earths, gallium, lithium, cesium, and tantalum
projects in Ontario, one of the world's most prolific, emerging hard-rock lithium districts. To learn more
about Volta and its Aki Project and its recently acquired Springer Project, please visit
www.voltametals.ca
.
ON BEHALF OF THE BOARD
For further information, contact:
Kerem Usenmez, President & CEO
Tel: 416.919.9060
Email:
Website:
www.voltametals.ca
Neither the CSE nor the Investment Industry Regulatory Organization of Canada accepts
responsibility for the adequacy or accuracy of this release.
This news release contains forward-looking statements relating to product development, plans,
strategies, and other statements that are not historical facts. Forward-looking statements are often
identified by terms such as "will", "may", "should", "anticipate", "expects" and similar expressions. All
statements other than statements of historical fact included in this news release are forward-looking
statements that involve risks and uncertainties. Forward-looking information in this news release
includes, but is not limited to, the anticipated use of the net proceeds from the Offerings and the receipt
of all necessary approvals for the Offering. There can be no assurance that such statements will prove to
be accurate, and actual results and future events could differ materially from those anticipated in such
statements. Important factors that could cause actual results to differ materially from the Company's
expectations include: the risks detailed from time to time in the filings made by the Company with
securities regulators; the fact that Volta's interests in its mineral properties are options only and there are
no guarantee that such interest, if earned, will be certain; the future prices and demand for lithium; and
delays or the inability of the Company to obtain any necessary approvals, permits and authorizations
required to carry out its business plans. The reader is cautioned that assumptions used in the
preparation of any forward-looking statements may prove to be incorrect. Events or circumstances may
cause actual results to differ materially from those predicted, as a result of numerous known and
unknown risks, uncertainties, and other factors, many of which are beyond the control of the Company.
The reader is cautioned not to place undue reliance on any forward-looking statements. Such
information, although considered reasonable by management at the time of preparation, may prove to
be incorrect and actual results may differ materially from those anticipated. Forward-looking statements
contained in this news release are expressly qualified by this cautionary statement. The forward-looking
statements contained in this news release are made as of the date of this news release, and the
Company disclaims any intention or obligation to update or revise any forward-looking statements,
whether as a result of new information, future events, or otherwise, other than as required by law.
To view the source version of this press release, please visit
https://www.newsfilecorp.com/release/255512