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Giyani Metals (TSXV:EMM) seeks $1M to fund further engineering work

Mining
TSX:EMM
04 September 2020 11:54 (EDT)

Giyani Metals (EMM) is set to raise up to C$1 million in a private placement to support further feasibility study-focused engineering work.

Under the terms of the placement, the Oakville, Ontario-based mineral resource company intends to issue an unspecified number of units at a price of 12.5 cents each.

These units will be comprised of one common share in Giyani Metals and half of one common share purchase warrant.

Each whole warrant will entitle the holder to acquire an additional common share at a price of $0.20, exercisable over a period of 18 months from the date of issuance.

In connection with the offering, the company has engaged Tactex Asset Management as agent.

Tactex will be entitled to receive a cash commission worth six per cent of the total amount raised, along with a number of warrants equal to six per cent of the total number of units sold.

These warrants will be exercisable at a price of 12.5 cents per share, and will be subject to a mandatory holding period of four months and one day.

Robin Birchall, CEO of Giyani Metals, said he is delighted to propose the financing in partnership with Tactex.

“These funds will allow the company to conduct additional value-accretive engineering work complementary to the feasibility study.

“As mentioned in our recent news release, we are working on a further update to the preliminary economic assessment, which was announced on 28 April 2020, to include high purity manganese sulphate monohydrate as an additional product stream,” he added.

Giyeni Metals (EMM) is currently down 7.14 per cent and is trading at $0.13 per share at 11:04am EDT.

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