New Energy closes $675,000 first tranche of financing

Jan 12, 2023

2023-01-12 12:15 ET – News Release

Mr. Rishi Kwatra reports

NEW ENERGY METALS ANNOUNCES CLOSING OF FIRST TRANCHE OF PRIVATE PLACEMENT

Further to its news release dated Jan. 5, 2023, New Energy Metals Corp. has closed the first tranche of a non-brokered private placement of units at a price of 25 cents per unit. In the First Tranche, which closed on January 11, 2023, the Company issued an aggregate of 2,700,000 Units for gross proceeds of $675,000, with each Unit consisting of one common share in the capital of the Company (each, a “Share”) and one-half of one common share purchase warrant (each whole warrant, a “Warrant”). Each Warrant entitles the holder to acquire one Share at a price of $0.50 per Share for a period of twenty four (24) months.

In the event that the Shares trade at a price of $1.00 or more for ten (10) consecutive trading days, the Company may, at its option, accelerate the expiry date of the Warrants by providing notice (the “Acceleration Notice”) to the Warrant holders by way of a news release that the Warrants will expire on the 30th day from the date of the Acceleration Notice.

The Company has agreed to pay finder’s fees of $6,475 in cash and issue an aggregate of 19,600 warrants (the “Finder’s Warrants”) to certain persons in connection with a portion of the Offering. The Finder’s Warrants are non-transferable and are exercisable into Shares on the same terms as the Warrants issued in the First Tranche.

The Company expects to use the net proceeds from the Offering to fund exploration expenses and potential acquisitions, as well as for working capital and other general corporate purposes.

The closing of the First Tranche is subject to the receipt of all required regulatory approvals including the approval of the TSX Venture Exchange. All securities to be issued in the First Tranche will be subject to a four month and one day hold period in accordance with applicable Canadian securities laws.

This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities referenced herein have not been and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”) or any state securities laws and may not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons unless registered under the U.S. Securities Act and applicable state securities laws, unless an exemption from such registration is available.

About New Energy Metals Corp.

New Energy Metals is listed on the TSX Venture Exchange under the symbol ENRG and is a Canadian-based resource company. The Company has an option to purchase a 100% title and interest in the Roslyn Lithium property, covering 5,100 hectares located 20 km southeast of the Georgia Lake Pegmatite Field and 35 km southeast of where Rock Tech Lithium just published a PEA supporting the indicated mineral resource of 10.6 Mt (million tonnes) grading 0.88% Li2O and an inferred mineral resource of 4.2 Mt grading 1.0% Li2O. It also has an option to purchase a 100% title and interest in the Troitsa property covering approximately 7,000 hectares located in the Omineca Mining Division of British Columbia.

We seek Safe Harbor.

https://new-enrg.com/