Velox Energy Materials Closes Private Placement of $1.5 Million to Progress Development of Flagship North Queensland Vanadium Project
Velox Energy Materials Closes Private
Placement of $1.5 Million to Progress
Development of Flagship North Queensland
Vanadium Project
All amounts expressed are in Canadian dollars
Toronto, Ontario--(Newsfile Corp. - November 30, 2023) -
Velox Energy Materials Inc.
(TSXV: VLX)
("
Velox
" or "
the Company
") is pleased to announce that it has received binding commitments for a
non-brokered private placement of 30,000,000 Units for gross proceeds of $1.5 million ("
the
Placement
") with a subscription price of $0.05 per Unit. Each Unit consists of one Common Share and
one Common Share Purchase Warrant ("Warrant").
Each Warrant entitles the holder to purchase one Common Share of the Company at $0.075 for a period
of 24 months from Closing Date, subject to certain Warrant expiry acceleration terms. The Company
reserves and maintains the right to accelerate the expiry of the Warrants, in whole or in part, upon
providing notice of acceleration if the 20-day volume-weighted average price of the Common Shares on
the Company's primary stock exchange is greater than $0.15 per Common Share.
The Units will be
issued on or around December 4, 2023.
The proceeds from the Placement will be used to progress the development of Velox's flagship North
Queensland Vanadium Project ("
NQVP
"), with planned activities for NQVP including:
Metallurgical testwork, sampling and baseline flowsheet optimization
Mineral Resource update for the Cambridge Deposit
Aircore drilling to delineate high-grade zones at the Cambridge Deposit
Global Mineral Resource updates; and
Environmental studies
In addition, the Company will use the proceeds towards a planned dual listing on the ASX via a CDI
listing in early 2024.
Velox President and CEO, Simon Coyle, commented:
"
We are pleased by the interest in Velox and our portfolio of projects. Following presentations
throughout Australia, it was clear that investors like our strategy of developing a range of energy
materials projects. We have a good pipeline of news flow coming from the NQVP over the coming
months and we expect first news from our Quebec lithium assets in the new year."
"Our successful Private Placement will assist Velox in continuing the development of our Cambridge
Mineral Resource in North Queensland as we optimize our metallurgical testwork, working towards the
development of a robust process flowsheet during 2024. The raising will also be utilized to underpin
the dual listing process on the ASX, which we anticipate to be finalized early in 2024."
In connection with the closing, the Company will pay a cash fee of $90,000 and issue 900,000 warrants
(the "
Finders' Warrants
") to eligible Finders. Each Finder Warrant entitles the holder to acquire one
common share at a price of $0.075 per share for a period of 24 months from the Closing Date.
The participation by two directors of the Company in the financing for C$175,000 or 3,500,000 Units
constitutes a "related party transaction" pursuant to Multilateral Instrument 61-101 Protection of Minority
Security Holders in Special Transactions ("
MI 61-101
"). The Company intends to rely on the exemptions
from the formal valuation and minority shareholder approval requirements of MI 61-101 contained in
Section 5.5(b) and Section 5.7(1)(b) of MI 61-101, respectively, on the basis that (i) no securities of the
Company are listed or quoted on any of the markets specified in Section 5.5(b) of MI 61-101 and (ii) the
fair market value of the securities issued to related parties pursuant to the financing does not exceed
$2,500,000, along with the other applicable circumstances contained in section 5.7(1)(b) of MI 61-101.
In accordance with applicable Canadian securities laws, all securities issued pursuant to the Private
Placement will be legended with a hold period of four months and one day from the date of issuance.
Completion of the Private Placement and payment of any finder's fees remain subject to the receipt of all
necessary regulatory approvals, including approval of the Toronto Venture Stock Exchange (the
"TSXV").
Qualified Person
The Velox Energy Materials scientific and technical information in this news release has been prepared
in accordance with the Canadian regulatory requirements set out in National Instrument 43-101
(Standards of Disclosure for Mineral Projects) and reviewed and approved on behalf of Velox Energy
Materials by Michael Griffiths, FAusIMM, Director & VP Exploration for Velox Energy Materials, a
Qualified Person.
About Velox Energy Materials
Velox Energy Materials is a publicly traded energy materials company developing and progressing high-
value assets in resource and research-friendly jurisdictions. The Company's priority focus is the
advanced NQV Project in Queensland, Australia. The NQV Project hosts the Cambridge Deposit with an
Indicated Mineral Resource of 61.33 Mt @ 0.34% V
2
O
5
and 234.6 ppm MoO
3
along with an Inferred
Mineral Resource of 144.87 Mt @ 0.33% V
2
O
5
and 241.9 ppm MoO
3
(Dufresne et al., 2022). The
Company is targeting shallow, high-grade mineralisation that can be developed using low-cost mining
and processing options.
The Company additionally owns Kotai Energy and the option to acquire 100% of the intellectual property
rights associated with the Solid-State Hydrogen Storage Project from Curtin University in Western
Australia. Kotai is focused on the commercialisation of technology that can produce high-pressure
hydrogen following transport as an inert powder.
In October 2023, the Company applied for a package of tenements that are prospective for lithium in
eastern Quebec.
Please visit our website at
www.veloxenergymaterials.com.au
for further information.
Investor Relations Contacts
Iryna Zheliasko
Investor Relations - Canada
Office: (+1) 647-249-9298
Email:
Andrew Rowell
Investor Relations - Australia
M: +61 400 466 226
Email:
Forward-Looking Statements
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
release.
This news release may contain forward-looking statements that are based on the Company's
expectations, estimates and projections regarding its business and the economic environment in
which it operates. Statements about the dual listing are all forward-looking information. These
statements are not guarantees of future performance and involve risks and uncertainties that are
difficult to control or predict. Therefore, actual outcomes and results may differ materially from those
expressed in these forward-looking statements and readers should not place undue reliance on such
statements. Statements speak only as of the date on which they are made, and the Company
undertakes no obligation to update them publicly to reflect new information or the occurrence of future
events or circumstances, unless otherwise required to do so by law.
To view the source version of this press release, please visit
https://www.newsfilecorp.com/release/189308