NEW YORK, NY – TheNewswire – June 15, 2021 – Western Magnesium Corporation (TSXV:WMG; Frankfurt-3WM; OTCQB:MLYF) (“Western Magnesium” or the “Company”) is pleased to announce a significant investment into the Company of US$1,500,000 for the continuing build-out of our pilot plant.
Executive President & CEO, Sam Ataya says, “This investment into our Company signals the market’s confidence by recognizing what has been achieved to date and the stage of development we are at regarding plant operations and metal production.”
The non-brokered private placement (the “Offering”) of a 12% unsecured convertible debenture (the “Convertible Debenture”) in the principal amount of US$1,500,000 is due December 10, 2022 (the “Maturity Date”). The Convertible Debenture is convertible into shares of Common Stock of the Company (“Conversion Shares”) prior to the Maturity Date at a price of US$0.10. In addition, pursuant to the Convertible Debenture, for every Conversion Share issued, the following shall also be issued thereunder: (i) one-half of one Company Class A common stock purchase warrant, with each whole warrant being exercisable at a price of US$0.13 until June 10, 2026 and (ii) one-half of one Class B common stock purchase warrant, with each whole warrant being exercisable at a price of US$0.19 until June 10, 2026.
The securities issued will be subject to a statutory hold period in Canada for a period of four months and one day. The securities have not been registered with the United States Securities and Exchange Commission and are also subject to a statutory one-year hold period in compliance with Regulation S of the Securities Act of 1933, as amended. The Regulation S hold period supersedes the TSX Venture Exchange hold period. Net proceeds from the Offering will be used for working capital and corporate purposes. The Offering is subject to final approval from the TSX Venture Exchange.
THIS NEWS RELEASE, PROVIDED PURSUANT TO APPLICABLE CANADIAN REQUIREMENTS, IS NOT FOR DISTRIBUTION TO UNITED STATES NEWS SERVICES OR FOR DISSEMINATION IN THE UNITED STATES, AND DOES NOT CONSTITUTE AN OFFER OF THE SECURITIES DESCRIBED HEREIN. THE OFFERING IN QUESTION HAS NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE SECURITIES LAWS, AND THE SECURITIES SOLD IN SUCH OFFERING MAY NOT BE OFFERED OR SOLD IN THE UNITED STATES OR TO U.S. PERSONS ABSENT REGISTRATION OR APPLICABLE EXEMPTION FROM REGISTRATION REQRUIREMENTS.
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