Business
Galway Metals Announces $4 Million Best Efforts Private Placement Financing
NOT FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATE...
About this update from Galway Metals, Inc.
[{"type":"text","content":"Galway Metals Announces $4 Million Best Efforts Private Placement FinancingNOT FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATESTORONTO, ON / ACCESSWIRE / April 6, 2023 / Galway Metals Inc. (TSX-V:GWM) (\"Galway Metals\" or the \"Company\"), is pleased to announce that it has entered into an agreement with Paradigm Capital Inc. on behalf of a syndicate of agents (collectively, the \"Agents\"), in connection with a best efforts private placement financing (the \"Offering\") for total proceeds of up to $4 million, consisting of up to 6,666,700 common shares of the Company that qualify as \"flow-through shares\" (within the meaning of subsection 66(15) of the Income Tax Act (Canada)) (the \"FT Shares\") at a price of $0.60 per FT Share.The Agent will be paid by the Company on closing of the Offering a cash commission equal to 6% of the gross proceeds of the Offering including on any exercise of the Agent's Option. In addition, the Company shall grant the Agent on closing of the Offering, broker warrants (the \"Broker Warrants\") entitling the Agent, from time to time for a period of 24 months from the Closing Date, to acquire that number of common shares of the Company (the \"Broker Shares\") that is equal to 3% of the number of FT Shares issued pursuant to the Offering, at an exercise price of $0.60 per Broker Share.The Company will use an amount equal to the gross proceeds received by the Company from the sale of the FT Shares, pursuant to the provisions in the Income Tax Act (Canada), to incur eligible \"Canadian exploration expenses\" that qualify as \"flow-through mining expenditures\" as both terms are defined in the Income Tax Act (Canada) (the \"Qualifying Expenditures\") on or before December 31, 2024, and to renounce all the Qualifying Expenditures in favour of the subscribers of the FT Shares effective December 31, 2023.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. Closing of the Offering is anticipated to occur on or about April 28, 2023.The securities have not been, and will not be, registered under the Unites States Securities Act of 1933, as amended (the \"U.S. Securities Act\"), or any U.S. state security laws, and may not be offered or sold in the Unites States without...