Business
Grid Metals to Commence Drilling at East Bull Palladium Property; Announces Financing
Not for distribution to United States Newswire Services or for dissemination in the United S...
About this update from Grid Metals Corp.
[{"type":"text","content":"Grid Metals to Commence Drilling at East Bull Palladium Property; Announces FinancingNot for distribution to United States Newswire Services or for dissemination in the United StatesTORONTO, ON / ACCESSWIRE / May 19, 2020 / Grid Metals Corp. (the \"Company\") (TSXV:GRDM) is pleased to announce that it has signed a contract for a new diamond drilling program at its East Bull Lake Palladium property 80 km west of Sudbury ON. The Company also announces a non-brokered private placement (the \"Offering\") of flow through units (the \"FT Units\" ) of the Company for gross proceeds of up to C$550,000 primarily in order to fund the drilling program. ( see Financing Announcement below )Drilling Set to Commence Grid recently completed a geophysical program the East Bull Lake Palladium property that has outlined several priority drill targets (see news releases of April 28, 2020 and May 6, 2020). The Company has entered into a diamond drilling contract and expects to commence drilling on the property in early June 2020, subject to Ontario health and safety guidelines relating to Covid-19.Financing Announcement The Company is conducting a non-brokered private placement of FT Units of up to $550,000. Each FT Unit is being offered at a price of C$0.16 (the \"Offering Price\") and will be comprised of one flow through share of the Company and one half of one common share purchase warrant (a \"Warrant\"), each Warrant entitling the holder thereof to acquire one common share of the Company at a price of C$0.26 for a period of 24 months from the date of closing of the Offering. The proceeds raised by the Company from the sale of the FT Units will be used to incur eligible \"Canadian exploration expenses\" that are \"flow-through mining expenditures\" (as such terms are defined in the Income Tax Act (Canada)), related to exploration of the Company's mineral properties. The Company may increase the Offering to up to C$800,000 in the event that the private placement is oversubscribed.Red Cloud Securities is acting as a finder and will receive a finder's fee equal to 8% of the gross proceeds of the Offering and finder warrants (\"Finder Warrants\") entitling the holder to purchase that number of Units of the Company equal to 8% of the aggregate number of Flow-Through Units sold under the Offering at the Offering Price for a period of twentyfour (24) ...