New Age Metals: $1.2 Million Dollar Placement Oversubscribed, Placement Increased to $1.5M
TSX VENTURE: NAM
Vancouver, BC, Canada / TheNewswire / June 19, 2018 - New Age Metals Inc. (TSX.V: NAM; OTCQB: NMTLF; FSE: P7J.F) is pleased to announce that further to its news release of May 7, 2018 and May 23, 2018, the Company has oversubscribed the current placement, extended the closing date an additional 30 days, and has increased the private placement from $1,200,000 to $1,500,000.
Harry Barr, NAM's Chairman & CEO stated: "On behalf of our current shareholders, the Board of Directors, our Advisory Board, our Management Team, and the Consultants of NAM, I would like to thank the investors, our new shareholders, and two Toronto institutions for participating in our current private placement. I would also like to report that both our Lithium and PGM technical teams are in the field working hard towards our project objectives and that we will keep you posted on project developments on a regular basis. Please read through the entire release and go to our website (www.newagemetals.com) for further details on our company's activities"
The Company has closed its second tranche of the private placement raising an additional $326,027 and has issued 3,105,857 non-flow-through units (NFT "Unit") at a price of $0.09 per unit and 422,727 flow-through units ("FT Unit") at a price of $0.11 per unit in connection with the second tranche, for an aggregate amount of $1,246,577.
Each NFT Unit consists of one common share and one half of one non-transferable share purchase warrant ("Warrant") with each whole Warrant being exercisable at a price of $0.15 per share during the first year and $0.20 per share during the second year for a period of two (2) years from the date of closing subject to an accelerated expiry clause.
Each FT Unit consists of one flow-through share and one half of one non-transferable share purchase warrant ("Warrant") with each whole Warrant being exercisable at a purchase price of $0.15 per share during the first year and $0.20 per share during the second year for a period of two (2) years from the date of closing subject to an accelerated expiry clause.
Finder's fees will be paid in connection with the second tranche closing in the amount of $300 cash and 2,727 broker warrants on the same terms as the purchaser warrants, subject to regulatory approval.
All securities issued in connection with the second tranche closing are subject to a four month plus one day hold period expiring on October 20, 2018 in accordance with applicable Securities Laws.
Warrant Accelerator Clause
The Warrants will be subject to an acceleration clause. If the closing price of the Company's shares on the TSX Venture Exchange is at or above $0.30 per share for a period of ten (10) consecutive trading days during the exercise period, the Company may accelerate the expiry date of the Warrants to 30 calendar days from the date express written notice is given by the Company.
The proceeds of the private placement will be used for working capital and to fund the company's first economic study on it's 100% owned River Valley PGM Project for the acquisition and exploration of Platinum Group Metals (PGM), Lithium and Rare Earth Metals. The River Valley PGM project is the largest undeveloped primary PGM project in North America and management is moving the project towards its first economic study, a Preliminary Economic Assessment (PEA).
Stock Option Grant
In addition, the Company announces that it has granted 100,000 incentive stock options to a consultant of the Company at an exercise price of $0.12 per share for a period of five (5) years from the date of grant in accordance with the Company's Stock Option Plan. The Stock Options granted will be subject to vesting restrictions, acceptance by the TSX Venture Exchange and will be subject to regulatory hold periods in accordance with applicable Canadian Securities Laws.
The contents contained herein that relate to Exploration Results or Mineral Resources is based on information compiled, reviewed or prepared by Carey Galeschuk, a consulting geoscientist for New Age Metals. Mr. Galeschuk is the Qualified Person as defined by National Instrument 43-101 and has reviewed and approved the technical content of this news release.
On behalf of the Board of Directors
Harry G. Barr
Chairman and CEO
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.
Cautionary Note Regarding Forward Looking Statements: This release contains forward-looking statements that involve risks and uncertainties. These statements may differ materially from actual future events or results and are based on current expectations or beliefs. For this purpose, statements of historical fact may be deemed to be forward-looking statements. In addition, forward-looking statements include statements in which the Company uses words such as "continue", "efforts", "expect", "believe", "anticipate", "confident", "intend", "strategy", "plan", "will", "estimate", "project", "goal", "target", "prospects", "optimistic" or similar expressions. These statements by their nature involve risks and uncertainties, and actual results may differ materially depending on a variety of important factors, including, among others, the Company's ability and continuation of efforts to timely and completely make available adequate current public information, additional or different regulatory and legal requirements and restrictions that may be imposed, and other factors as may be discussed in the documents filed by the Company on SEDAR (www.sedar.com), including the most recent reports that identify important risk factors that could cause actual results to differ from those contained in the forward-looking statements. The Company does not undertake any obligation to review or confirm analysts' expectations or estimates or to release publicly any revisions to any forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. Investors should not place undue reliance on forward-looking statements.