Business
First Tellurium Closes First Tranche of Private Placement
Vancouver, BC, Canada, October 15, 2024 – TheNewswire – First Tellurium Corp. (CSE: FTEL, OTC FSTTF) (the “Company” or “First Tellurium”) announces it has close
About this update from First Tellurium Corp
[{"type":"text","content":"Vancouver, BC, Canada, October 15, 2024 – TheNewswire – First Tellurium Corp. (CSE: FTEL, OTC FSTTF) (the “Company” or “First Tellurium”) announces it has closed the first tranche (the \"First Tranche\") of a non-brokered private placement (the “Offering”) previously announced on September 24, 2024. The Company has issued 5,707,143 flow-through shares (the \"Flow-through Shares\") at a price of $0.14 per share for gross proceeds of $799,000 and 6,345,991 units (the \"Units\") at a price of $0.11 per unit for gross proceeds of $698,600. Each Unit consists of one common share and one common share purchase warrant exercisable at $0.15 for a period of two years following the close of the Offering. Proceeds arising from the sale of the flow-through shares will help fund planning, drilling and other exploration at First Tellurium’s Deer Horn Project in 2025. Proceeds arising from the sale of the units will be utilized for exploration and maintenance on the Colorado Klondike property and for unallocated working capital. Tyrone Docherty, President, CEO and a director of the Company (the “Insider”), participated in the Offering through the purchase by his private company, Docherty Capital Corp., of 1,600,000 Units for gross proceeds of $176,000. Participation by the Insider in the Offering is considered a “related party transaction” pursuant to Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions (\"MI 61-101\"). The Company is exempt from the requirements to obtain a formal valuation and minority shareholder approval in connection with the Insider's participation in the Offering in reliance of sections 5.5(a) and 5.7(a) of MI 61-101, respectively, on the basis that participation in the Offering by the Insider did not exceed 25% of the fair market value of the Company’s market capitalization The Company did not file a material change report at least 21 days prior to the closing of the Offering as participation of the Insider had not been confirmed at that time. Mr. Docherty’s share purchase equals 12% of the first tranche funding. The Company paid finder’s fees of $38,500 in connection with the First Tranche closing to arms-length parties. About First Tellurium Corp. First Tellurium’s unique business model is to generate revenue and value through mineral discovery, project developme...