American Manganese arranges $20M private placement

Sep 30, 2021

2021-09-30 10:36 ET – News Release

Mr. Larry Reaugh reports

AMERICAN MANGANESE ANNOUNCES CDN$20 MILLION PRIVATE PLACEMENT OFFERING WITH INSTITUTIONAL INVESTORS

American Manganese Inc. has entered into a securities purchase agreement for a private placement of its common shares and warrants to purchase common shares to institutional investors for aggregate gross proceeds to the company of approximately $20-million. Pursuant to the Private Placement, the Company will issue up to 20,000,000 Common Shares and Warrants to purchase up to 20,000,000 Common Shares at a purchase price of $1 per Common Share and associated Warrant. Each Warrant will entitle the holder thereof to purchase one Common Share at an exercise price of $1.25 per Common Share at any time prior to the three-year anniversary of the closing date of the Private Placement.

Alliance Global Partners (the “Agent”) is acting as the exclusive placement agent for the private placement.

The Common Shares and Warrants to be issued under the Private Placement will be qualified by way of a prospectus supplement under the Company’s short form base shelf prospectus dated September 16, 2021 (collectively, the “Prospectus Supplement”) which will be filed in the province of British Columbia. In the United States, the Common Shares, Warrants and the shares issuable upon the exercise of the Warrants will be offered on a private placement basis pursuant to exemptions from the registration requirements of the United States Securities Act of 1933, as amended (the “U.S. Securities Act”), and certain other jurisdictions in accordance with applicable securities laws. No securities will be offered for sale or sold to persons or companies resident in Canada.

The Agent shall receive, on the Closing Date, a cash commission equal to 7.0% of the aggregate gross proceeds received from the sale of the Common Shares and Warrants. In addition, the Company will issue to the Agent warrants equal to 7.0% of the number of Common Shares sold under the Private Placement (“Placement Agent Warrants”). Each Placement Agent Warrant will entitle the holder thereof to purchase one Common Share at an exercise price of C$1.00 per share at any time commencing from the six month anniversary of the Closing Date to the three-year anniversary of the Closing Date.

The net proceeds of the Private Placement are expected to be used by the Company for working capital and general corporate purposes. Details as to the specific allocation of the proceeds will be disclosed in the Prospectus Supplement.

The Company expects the Closing Date to occur on or about October 4, 2021. The Company will apply to list the Common Shares issued in the Private Placement and the Common Shares underlying the Warrants on the TSX Venture Exchange (the “TSXV”). The Private Placement is subject to the satisfaction of certain customary closing conditions, including, but not limited to, the receipt of all necessary regulatory and stock exchange approvals (including, for certainty, the acceptance of the TSXV).

About American Manganese Inc.

American Manganese is a critical metals company focused on the upcycling of lithium-ion battery waste into high-value battery cathode materials, using its closed-loop RecycLiCo process. With minimal processing steps and up to 99% extraction of lithium, cobalt, nickel, and manganese, the upcycling process creates valuable lithium-ion battery materials for direct integration into the re-manufacturing of new lithium-ion batteries.

American Manganese’s original patented manganese process is the cornerstone technology in the development of the Company’s lithium-ion battery cathode recycling process, RecycLiCo.

We seek Safe Harbor.

https://americanmanganeseinc.com/