Business
Elemental Royalties Closes $14M Private Placement of Common Shares
Vancouver, British Columbia--(Newsfile Corp. - April 1, 2022) - Elemental Royalties Corp. (TSX...
About this update from Elemental Royalty Corporation
[{"type":"text","content":"Elemental Royalties Closes $14M Private Placement of Common SharesVancouver, British Columbia--(Newsfile Corp. - April 1, 2022) - Elemental Royalties Corp. (TSXV: ELE) (OTCQX: ELEMF) (\"Elemental\" or \"the Company\") today announced that it completed its previously announced non-brokered private placement of 9,275,000 common shares of Elemental (\"Common Shares\") at an issue price of C$1.51 per Common Share for aggregate gross proceeds of C$14,005,250 (the \"Offering\"). The net proceeds of the Offering will be used to fund the acquisition of a gold stream at the Ming Copper-Gold Mine in Newfoundland and Labrador in Canada (the \"Transaction\"), with the remainder for general working capital purposes. The Transaction entered into pursuant to a gold purchase and sale agreement dated March 16, 2022 with Rambler Metals and Mining Canada Limited, a wholly owned subsidiary of Rambler Metals and Mining PLC (AIM: RMM), the owner of the Ming Copper-Gold Mine, is expected to close on or shortly after April 1, 2022. Following the Offering, Elemental has 78,266,221 Common Shares outstanding.The Common Shares issued pursuant to the Offering are subject to a statutory hold period lasting four months and one day following the closing date of the Offering. The Offering remains subject to the final approval of the TSX‐V. Canaccord Genuity Corp. acted as Elemental's financial advisor in respect of the Offering. Insiders of the Company subscribed for a total amount of 1,091,755 Common Shares under the Offering for total proceeds of $1,648,550.05. Participation by these insiders constituted a related party transaction as defined under Multilateral Instrument 61‐101 - Protection of Minority Security Holders in Special Transactions (\"MI 61‐101\"). The issuance of securities to the related parties was exempt from the formal valuation requirements of Section 5.4 of MI 61-101 pursuant to Subsection 5.5(b) of MI 61-101 and exempt from the minority shareholder approval requirements of Section 5.6 of MI 61-101 pursuant to Subsection 5.7(1)(b) of MI 61-101. The Company did not file a material change report 21 days prior to the closing of the Offering as the details of the participation of these insiders of the Company had not been confirmed at that time. In connection with the Offering, Euro Pacific Asset Management (\"EPAM\") benef...