Funds Will Support Bull Lake Palladium Work
Grid Metals Corp. (TSXV:GRDM)(OTCQB:MSMGF) is undertaking a brokered private placement to raise gross proceeds of up to C$3 million.
The sale will be made up of a combination of:
- non-flow-through units of the company to be sold at a price of C$0.22 per Unit; and
- flow-through units of the company to be sold at a price of C$0.25 per FT Unit.
Each Unit will be comprised of one common share of the company and one half of one common share purchase warrant (each whole warrant). Each Warrant will entitle the holder thereof to acquire one common share of the company at a price of C$0.33 for a period of 24 months from the closing date of the Offering.
The company may elect to increase the size of the Offering by selling additional Units or FT Units at the offering prices for additional gross proceeds of up to C$500,000.
The net proceeds from the Units will be used primarily for exploration of the company’s East Bull Lake Palladium property and general working capital purposes.
Proceeds from the sale of FT Shares will be used to incur “Canadian exploration expenses” as defined in subsection 66.1(6) of the Income Tax Act and “flow through mining expenditures” as defined in subsection 127(9) of the Income Tax Act. Such proceeds will be renounced to the subscribers with an effective date not later than December 31, 2021, in the aggregate amount of not less than the total amount of gross proceeds raised from the issue of FT Shares.
The closing of the Offering is expected to occur on or about May 26, 2021 and is subject to receipt of all necessary regulatory approvals.
Grid Metals Corp. is an exploration and development company that has a diversified portfolio of projects in the nickel-copper-platinum group metal sectors. These commodities are vital to the emerging battery metals, energy storage and automotive sectors. Grids projects are located in the Canadian provinces of Ontario and Manitoba.
