April 21, 2022; Vancouver, British Columbia: Metallum Resources Inc. (TSXV: MZN) is pleased to report that it has closed its previously announced non-brokered private placement with the issuance of 87,371,674 units at $0.06 each, for gross proceeds of $5,242,300. Each unit consists of one common share of the Company and one warrant which entitles the holder to purchase one additional common share at $0.14 for two years from closing.
In connection with the financing, the Company paid finder’s fees totaling $245,400 cash and issued a total of 4,090,000 warrants which have the same terms as described above. All common shares and warrants issued on closing are subject to a resale restriction until August 22, 2022.
As a result of participation in the placement by insiders of the Company, the placement is considered to be a “related party transaction” within the meaning of TSX Venture Exchange Policy 5.9 and Multilateral Instrument 61-101 (“MI 61-101”). The Company has relied on the exemptions from the formal valuation and minority shareholder approval requirements of MI 61-101 contained in sections 5.5(b) and 5.7(a) of MI 61-101.
Funds raised from the financing are intended to be used for general working capital, and to accelerate the development of the Company’s Superior Lake Zinc and Copper Project.
Adam Kiley has been appointed a Director of the Company, in the place of David Cass who has stepped down from the Board.
Adam Kiley has over 18 years’ experience in the mining sector with a depth of experience in providing corporate and financial advisory services. Adam holds a Bachelor of Commerce from Curtin University in Western Australia. He is also currently a corporate development executive with Lotus Resources Limited (ASX:LOT) and Frontier Energy (ASX:FTE).
Kerem Usenmez, President and CEO, commented: “I am very pleased in closing this over-subscribed financing, as we continue to develop our high-grade Zinc and Copper project. This new capital will keep the development of our project on schedule. We are excited to be in a position to continue advancing the Superior Lake Project and committed to providing materials for the green future and a sustainable economy, in line with Ontario’s recently announced Critical Minerals Strategy. This project has two of the critical minerals recognized by Canada and the United States, at a very high grade. We look forward to an incredibly promising future in Ontario as we continue to rapidly move into development. The project location and the existing infrastructure, along with access to clean energy, proximity to state of the art logistics, and a motivated and skilled workforce make this an exciting project, with the right timing, as we see commodities becoming more and more in demand. I also thank David for his invaluable contributions to the Company thus far, and welcome Adam to the Board as we move our company and the Project into this advanced stage.”
Simon Ridgway, Chairman of the Board, commented: “We would like to thank both existing and new shareholders for the strong support they provided in the recent capital raising. We are now in an exceptionally strong position to advance our Superior Lake Zinc Project, one of the highest-grade zinc projects globally, at a time when the zinc price is near all-time record highs.
I would also like to acknowledge my appreciation for the many years of service David has provided to Metallum, including his contributions to the Board. We wish him well. We welcome Adam Kiley to the Metallum Board and look forward to benefitting from his extensive corporate development experience.”