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Electric Metals (USA) Limited ("EML") Announces First Closing of Non-Brokered Financing
Issued 10,744,680 Units at a price of $0.235 per Unit for gross proceeds of $2,525,000. EML in...
About this update from Electric Metals Usa Limited
[{"type":"text","content":"Electric Metals (USA) Limited (\"EML\") Announces First Closing of Non-Brokered FinancingIssued 10,744,680 Units at a price of $0.235 per Unit for gross proceeds of $2,525,000.EML insiders participated along with US-based Quail Bend LLC (\"Quail Bend\").New funding will allow EML to expedite exploration drilling, metallurgical and battery test work and to initiate process design and preliminary mine studies at the high-grade Emily Manganese Project, Minnesota, U.S.Toronto, Ontario--(Newsfile Corp. - June 19, 2023) - Electric Metals (USA) Limited (TSXV: EML) (\"EML\" or the \"Company\"), is pleased to announce it has closed the first tranche of its previously announced non-brokered financing (the \"Offering\"). Please see the Company's press release dated May 16, 2023. Pursuant to the first tranche closing, the Company issued a total of 10,744,680 units (the \"Units\") at a price of $0.235 per Unit for gross proceeds of $2,525,000 on this first tranche closing. Each Unit consisted of one common share in the capital of the Company (each, a \"Common Share\") and one share purchase warrant (each, a \"Warrant\") with each Warrant exercisable to acquire one additional Common Share at an exercise price of $0.35 for a period of 24 months from the date of issuance of the Warrant.The first tranche closing was completed in connection with a binding letter of intent between the Company and Quail Bend LLC (\"Quail Bend\") dated May 12, 2023 (the \"LOI\") pursuant to which Quail Bend, or an affiliate thereof, agreed to participate in the Offering to acquire up to 21,276,596 Units or up to an approximate 16.7% ownership interest in the Company (on a non-diluted basis) (the \"Strategic Investment\"). The first tranche closing of the Offering comprised of a subscription of 5,319,149 Units pursuant to the Strategic Investment and the subscription of 5,319,150 Units by certain insiders of the Company. Please see the press release of the Company dated May 16, 2023 for more information.The LOI provides that a second closing (\"Second Closing\") shall be completed in one or more tranches on or prior to September 30, 2023 with any tranche otherwise causing Quail Bend to become a \"Control Person\" to be completed within five (5) Business Days after receipt of shareholder approval permitting Quail Bend to become a \"Control Person\". The Second Closing...