Vancouver, British Columbia--(Newsfile Corp. - January 12, 2023) - New Energy Metals Corp. (TSXV: ENRG) (OTC Pink: NEMCF) ("New Energy" or the "Company") is pleased to announce that further to its news release dated January 5, 2023, the Company has closed the first tranche (the "First Tranche") of a non-brokered private placement (the "Offering") of units (each, a "Unit") at a price of $0.25 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.
ON BEHALF OF THE BOARD OF DIRECTORS,
New Energy Metals Corp.
CEO & Director
#2710 - 200 Granville Street
Vancouver, BC V6C 1S4, Canada
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.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This news release may contain certain "forward-looking statements" such as the anticipated closing of the Offering, the use of proceeds thereof, and the intention to focus on the exploration and development of lithium and copper properties in the future. Forward-looking statements involve known and unknown risks, uncertainties, assumptions, and other factors that may cause the actual results, performance, or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements, including but not limited to: risks related to the Company's inability to close the Offering for any reason; a downturn in the capital markets and the mining industry in general; economic risks related to recession and inflation, and the risks identified in the Company's periodic reports filed on SEDAR. Any forward-looking statement speaks only as of the date of this news release and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise.
**NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES**
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