- Transition Metals (TSXV:XTM) is set to raise up to C$1.2 million in a non-brokered private placement
- The company will issue 5,000,000 units at $0.15 each, as well as 2,500,000 flow-through shares at $0.18 each
- Each unit will consist of one common share and one common share purchase warrant
- The proceeds will be used to fund exploration activities, as well as for general working capital purposes
- Transition Metals (XTM) is currently down 2.7 per cent and is trading at $0.18 per share, with a market cap of $8.4 million
Transition Metals (TSXV:XTM) is set to raise up to C$1.2 million in a non-brokered private placement.
Headquartered in Ontario, the company is a multi-commodity project generator that specialises in converting new exploration ideas into discoveries.
Joint venture partners are able to earn an interest in these projects, by contributing funds to higher-risk drilling and exploration activities. This allows Transition Metals to retain liquidity and minimise its shareholder’s equity dilution.
Under the terms of the placement, the company will issue up to 5,000,000 units at a price of $0.15 each for a total of $750,000. These units will consist of one common share and one common share purchase warrant.
Each of the warrants will entitle the holder to acquire an additional common share at a price of $0.22, exercisable over a period of 24 months from the date of closing.
However, should the company’s shares trade above a price of $0.28 for 20 consecutive trading days, the expiry date of the warrants may be brought forward.
Furthermore, Transition Metals will also issue 2,500,000 flow-through shares at a price of $0.18 each, for gross proceeds of $450,000.
The company noted that a finder’s fee may be paid in connection with the placement, pursuant to a mutual agreement between the two parties as well as regulatory approval.
This fee will likely consist of seven per cent cash warrants for purchases made by investors brought in by the finder party, as well as share purchase warrants equal to seven per cent of such units or shares sold to these investors.
Transition Metals says that the proceeds from the placement will be used to fund exploration activities, as well as for general working capital purposes.
Transition Metals (XTM) is currently down 2.7 per cent and is trading at $0.18 per share at 11:33am EDT.