08:12:09 EDT Sat 30 Sep 2023
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New Energy closes $675,000 first tranche of financing

2023-01-12 12:15 ET - News Release

Mr. Rishi Kwatra reports


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 Jan. 11, 2023, the company issued an aggregate of 2.7 million units for gross proceeds of $675,000, with each unit consisting of one common share in the capital of the company and one-half of one common share purchase warrant. Each warrant entitles the holder to acquire one share at a price of 50 cents per share for a period of 24 months.

In the event that the shares trade at a price of $1 or more for 10 consecutive trading days, the company may, at its option, accelerate the expiry date of the warrants by providing notice to the warrantholders 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 finders' fees of $6,475 in cash and issue an aggregate of 19,600 warrants to certain persons in connection with a portion of the offering. The finder 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 finance 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.

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-per-cent title and interest in the Roslyn lithium property, covering 5,100 hectares located 20 kilometres southeast of the Georgia Lake pegmatite field and 35 kilometres southeast of where Rock Tech Lithium just published a PEA (preliminary economic assessment) supporting the indicated mineral resource of 10.6 million tonnes grading 0.88 per cent lithium oxide and an inferred mineral resource of 4.2 million tonnes grading 1.0 per cent lithium oxide. It also has an option to purchase a 100-per-cent title and interest in the Troitsa property covering approximately 7,000 hectares located in the Omineca mining division of British Columbia.

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