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Fireweed Metals Closes Previously Announced Offering For Total Proceeds of $16.8 Million
VANCOUVER, British Columbia, Sept. 01, 2023 (GLOBE NEWSWIRE) -- FIREWEED METALS CORP. (“Fireweed” or the “Company”) (TSXV: FWZ; OTCQB: FWEDF, formerly Fireweed
About this update from Fireweed Metals Corp.
[{"type":"text","content":" VANCOUVER, British Columbia, Sept. 01, 2023 (GLOBE NEWSWIRE) -- FIREWEED METALS CORP. (“Fireweed” or the “Company”) (TSXV: FWZ; OTCQB: FWEDF, formerly Fireweed Zinc Ltd.) is pleased to announce the closing of the non-brokered private placement (the “Offering”) first announced August 10, 2023. Highlights $16.8 million total raised to expand the 2023 drill program and support other exploration The Lundin Family, through their Trusts, subscribed for a total of 4,635,000 shares Other key shareholders subscribed including Larry Childress for 1,400,000 shares and Teck Resources Limited for 700,000 shares The Offering The Offering consisted of 8,750,000 flow-through common shares of the Company at a price of CAD$1.92 per share through a charitable donation arrangement or directly (“Premium Flow-through Shares”). The proceeds from the Offering will be used for exploration and development of the Company’s projects in northern Canada. The gross proceeds from the issuance of all Premium Flow-through Shares will be used on the Company’s projects to incur Canadian Exploration Expenses (“CEE”) which will qualify as “flow-through critical mineral mining expenditures” under the Income Tax Act (Canada). These expenses will be renounced by the Company to the purchasers of Premium Flow-through Shares with an effective date no later than December 31, 2023, in an aggregate amount no less than the proceeds raised under the Offering. Insiders of the Company acquired an aggregate of 6,085,000 Common Shares in the Offering, which participation constituted a “related party transaction” as defined under Multilateral Instrument 61-101 Protection of Minority Security Holders in Special Transactions (“MI 61-101”). Such participation is exempt from the formal valuation and minority shareholder approval requirements of MI 61-101 as neither the fair market value of the securities acquired by the insiders, nor the consideration for the securities paid by such insiders, exceed 25% of the Company’s market capitalization. As required by MI 61-101, the Company advises that it expects to file a material change report relating to the Offering less than 21 days from completion of the Offering, as the nature of the related party transaction is relatively immaterial, and was not necessary to complete the Offering, and can generally be considered reasonable in the circum...