iMetal Resources arranges $2-million private placement

May 19, 2021

2021-05-18 13:07 ET – News Release

Mr. Saf Dhillon reports

IMETAL ANNOUNCES EQUITY FINANCING TO FUND DEVELOPMENT OF PROJECTS

iMetal Resources Inc. has arranged a non-brokered private placement of units and flow-through shares for gross proceeds of up to $2-million. Units will be priced at 10 cents per unit and will consist of one common share in the capital of the company and one transferable share purchase warrant. Each warrant will entitle the holder thereof to purchase an additional share at an exercise price of 20 cents for a period of 24 months following the closing date of the private placement. FT shares will be priced at 13 cents per FT share and 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 sale of units and FT shares for: exploration activities at the company’s Gowganda West property, located in the Abitibi greenstone gold belt; exploration activities at the Oakes gold project, located in the Beardmore-Geraldton greenstone belt; and general working capital.

All securities issued under the private placement will be subject to a hold period that will expire on the date that is four months and one day from the date of issue. Finders’ fees may be paid on the private placement, pursuant to the policies of the TSX Venture Exchange.

The issuance of units/FT shares and the payment of any finders’ fees are subject to certain conditions, including, but not limited to, the receipt of all necessary approvals, including the approval the TSX-V.

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, approximately 100 kilometres south-southeast of the Timmins gold camp. Gowganda West shares a border with Aris Gold Corp.’s multimillion-ounce Juby deposit as well as with Orefinders Resources Inc.’s and Kirkland Lake Gold Ltd.’s Knight property.

The company is also focused on the Oakes gold project, which forms part of a portfolio of projects it recently acquired from Riverside Resources Inc., which is now a strategic investor/partner. The Oakes gold project is located in Oakes township, just north of Canadian National Highway 11 and approximately two kilometres north of the town of Long Lac, Ont. Oakes township is part of the well-endowed Beardmore-Geraldton greenstone belt region, located northeast of Thunder Bay, Ont., and the region has a long and rich mining history that has produced 4.1 million ounces of gold over the past 100 years, including the combined MacLeod-Cockshutt mine, which produced 1.5 million ounces of gold. More recently, the Hardrock project, held 50 per cent by Equinox Gold Corp., has elevated attention to the area by announcing its intention to mine its gold resource near Geraldton, Ont.

Qualified person

The scientific and technical information contained in this news release has been reviewed, verified and approved by R. Tim Henneberry, PGeo (British Columbia), a director of iMetal, a qualified person, as defined in National Instrument 43-101 — Standards of Disclosure for Mineral Projects.

We seek Safe Harbor.

https://www.imetalresources.ca/