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Galway Metals Announces $12.25 Million Best Efforts Private Placement Financing
NOT FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED ...
About this update from Galway Metals, Inc.
[{"type":"text","content":"Galway Metals Announces $12.25 Million Best Efforts Private Placement FinancingNOT FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATESTORONTO, ON / ACCESSWIRE / June 3, 2020 / Galway Metals Inc. (TSXV:GWM) (\"Galway Metals\" or the \"Company\"), is pleased to announce that it has entered into an agreement with Paradigm Capital Inc. (the \"Lead Agent\") on behalf of a syndicate of agents, including Laurentian Bank Securities Inc. (collectively, the \"Agents\"), in connection with a proposed best efforts private placement financing (the \"Offering\") for total proceeds of up to $12.25 million, consisting of up to 11,417,400 common shares of the Company that qualify as charity \"flow-through shares\" (within the meaning of subsection 66(15) of the Income Tax Act (Canada)) (the \"Charity FT Shares\") at a price of $0.635 per Charity FT Share and up to 11,363,700 hard-dollar common shares of the Company (\"HD Shares\") at a price of $0.44 per HD Share (together, collectively hereinafter referred as the \"Offered Securities\").Mr. Eric Sprott has agreed to purchase C$3.0 million of HD Shares in the Offering. Following the closing of the Offering, Mr. Sprott's fully diluted ownership interest in the Company will be approximately 4%.The Offering is subject to regulatory approval and all securities issued pursuant to the Offering will have a hold period of four months and one day. The Company intends to use the net proceeds from the private placement to fund ongoing exploration, to update the Company's technical studies, and for general corporate purposes. The gross proceeds received by the Company from the sale of the Charity FT Shares will be used to incur Canadian Exploration Expenses (''CEE'') that are ''flow-through'' mining expenditures (as such terms are defined in the Income Tax Act (Canada)). Such gross proceeds will be renounced to the subscribers with an effective date not later than December 31, 2020, in the aggregate amount of not less than the total amount of the gross proceeds raised from the issue of Charity FT Shares.In consideration for their services, the Agents will receive a cash commission equal to 6% of the gross proceeds of the Offering. The Agents will also receive options exercisable to acquire that number of HD Shares equal to 6% of the number of total Offered Securiti...