Key Highlights
- Viridian Metals plans a non-brokered private placement of up to $5 million.
- Flow-through units are priced at $0.80; non-flow-through units at $0.68.
- Warrants run for 24 months, with possible early expiry if share-price thresholds are met.
Viridian Metals Inc. (CSE: VRDN) (OTCQB: VIRMF) has announced a proposed non-brokered private placement for aggregate gross proceeds of up to $5,000,000, made up of a mix of flow-through units and non-flow-through units.
The company said it will decide the allocation between the two unit types, and it may increase the size of the financing depending on investor demand, subject to acceptance by the Canadian Securities Exchange (CSE). The private placement may close in one or more tranches.
This article is a journalistic opinion piece which has been written based on independent research. It is intended to inform investors and should not be taken as a recommendation or financial advice.
Viridian set the price for flow-through units (FT Units) at $0.80 per unit and non-flow-through units (HD Units) at $0.68 per unit. Each FT Unit will include one flow-through common share and one-half of one common share purchase warrant, with each whole FT warrant exercisable at $1.25 per share for 24 months from issuance. Each HD Unit will include one common share and one-half of one common share purchase warrant, with each whole HD warrant exercisable at $1.05 per share for 24 months.
The warrants include an acceleration feature. After the private placement closes, if the volume weighted average trading price of Viridians common shares on the CSE exceeds $1.50 over any 21 consecutive trading days (for FT warrants) or $1.85 (for HD warrants), the company may accelerate the expiry by issuing a news release; the applicable warrants would then expire on the 30th day after that news release.
Viridian expects to use gross proceeds from FT Units to fund eligible Canadian exploration expenses that qualify as flow-through critical mineral mining expenditures under Canadas Income Tax Act, on its Kraken and/or Sedna projects in Labrador. The company said it will renounce those expenditures to FT Unit subscribers with an effective date no later than December 31, 2026. Net proceeds from HD Units are expected to be used for general corporate and working capital purposes.
Chief Executive Officer Tyrell Sutherland said the financing is intended to fund drilling aimed at supporting a maiden mineral resource estimate in 2027, and that the company expects to continue reporting drill results through the end of the year, followed by an update to its Exploration Target in January.
All securities issued under the private placement will be subject to a statutory hold period of four months and one day from the date of issuance, and an additional exchange hold under CSE policy, according to the release. Viridian also said it may pay finders fees to arms length finders in cash and securities in connection with the financing.
The original press release is available on stockhouse.com
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