iMetal adds flow-through units to $2-million financing

Mar 8, 2022

2022-03-08 11:25 ET – News Release

Mr. Saf Dhillon reports

IMETAL ADDS FLOW-THROUGH SHARES TO EQUITY FINANCING TO FUND DEVELOPMENT OF PROJECTS AND ENGAGES ITG AS MARKET-MAKER

iMetal Resources Inc. will conduct a non-brokered private placement of up to 16,666,667 units at a price of 12 cents per unit for gross proceeds of up to $2-million. Each unit will consist of one common share of the company and one common share purchase warrant exercisable to acquire an additional common share at a price of 20 cents for a period of 24 months.

The company will conduct a portion of the placement through the issuance of units on a flow-through basis at a price of 15 cents per FT unit. Each FT unit will consist of one common share of the company and one warrant. The FT shares will qualify as flow-through shares within the meaning of Subsection 66(15) of the Income Tax Act (Canada).

The company intends to use net proceeds from the placement for: exploration activities at the company’s Gowganda West property, located in the Abitibi greenstone gold belt; exploration activities at the 665-hectare, road-accessible Kerrs gold deposit, located about 90 kilometres east-northeast of Timmins, Ont., in the Abitibi greenstone gold belt, in the event the previously announced property option is consummated; and general working capital.

In connection with the placement, the company may pay finders’ fees to eligible third parties that have introduced subscribers to the company. All securities issued in connection with the placement will be subject to a four-month-and-one-day statutory hold period, in accordance with applicable securities laws. The completion of the placement remains subject to the approval of the TSX Venture Exchange.

Subject to regulatory approval, the company has engaged the services of Independent Trading Group (ITG) to provide market-making services. ITG will trade shares of the company with the objective of maintaining a reasonable market and improving the liquidity of the company’s common shares.

ITG will receive compensation of $5,000 per month, payable monthly. The agreement is for an initial term of three months and will renew for additional one-month terms unless terminated. The agreement may be terminated by either party with 30 days of notice. There are no performance factors contained in the agreement, and ITG will not receive shares or options as compensation. ITG and the company are unrelated and unaffiliated entities, and at the time of the agreement, neither ITG nor its principals have an interest, directly or indirectly, in the securities of the company.

About iMetal Resources Inc.

iMetal Resources is a Canadian-based junior exploration company focused on the exploration and development of its portfolio of resource properties in Ontario and Quebec. iMetal is focused on advancing its Gowganda West project, an advanced-exploration-stage gold project located within the Shining Tree area in the southern part of the Abitibi greenstone belt, about 100 kilometres south-southeast of the Timmins gold camp.

We seek Safe Harbor.

https://imetalresources.ca/