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Clean Air Metals Announces Closing of Private Placement of $6.7 Million of Flow-Through Shares
Toronto, Ontario--(Newsfile Corp. - June 16, 2020) - Clean Air Metals Inc. ( TSXV: AIR )&...
About this update from Clean Air Metals, Inc.
[{"type":"text","content":"Clean Air Metals Announces Closing of Private Placement of $6.7 Million of Flow-Through SharesToronto, Ontario--(Newsfile Corp. - June 16, 2020) - Clean Air Metals Inc. (TSXV: AIR) (the \"Company\" or \"Clean Air Metals\") is pleased to announce that it has closed the previously announced private placement of an aggregate of 13,400,000 common shares of the Company that will qualify as \"flow-through shares\" (within the meaning of subsection 66 (15) of the Income Tax Act (Canada)) (\"Flow-Through Shares\") at a price of C$0.50 per Flow-Through Share (the \"Issue Price\"), for aggregate gross proceeds of C$6,700,000 (the \"Offering\"). In connection with the Offering, Paradigm Capital Inc. acted as lead agent (the \"Lead Agent\"), on behalf of a syndicate of agents, including Clarus Securities Inc. and Beacon Securities Limited (together with the Lead Agent, the \"Agents\").The gross proceeds from the Offering will be used by the Company to incur eligible \"Canadian exploration expenses\" that will qualify as \"flow-through mining expenditures\" as such terms are defined in the Income Tax Act (Canada) (the \"Qualifying Expenditures\") related to the Company's projects in Canada. All Qualifying Expenditures will be renounced in favour of the subscribers of the Flow-Through Shares effective December 31, 2020.As consideration for the services provided by the Agents in connection with the Offering: (a) the Agents received a cash commission equal to 6% of the gross proceeds of the Offering (and reduced to 3% with respect to certain subscribers on the \"President's List\"); and (b) the Agents received that number of compensation options (the \"Compensation Options\") as is equal to 6% of the number of Flow-Through Shares issued under the Offering (and reduced to 3% with respect to certain subscribers on the \"President's List\") on the closing date of the Offering (the \"Closing Date\"). Each Compensation Option is exercisable to acquire one common share of the Company, issued on a non-flow through basis (each, a \"Compensation Option Share\") at a price of $0.50 per Compensation Option Share, for a period of twenty-four (24) months after the Closing Date.All securities issued in connection with the Offering are subject to a statutory hold period of four months and one day from the Closing Date. The securities offered ha...