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Strategic Metals Ltd. Closes Second Tranche of Private Placement
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About this update from Strategic Metals Ltd.
[{"type":"text","content":"Strategic Metals Ltd. Closes Second Tranche of Private PlacementNot for dissemination or distribution in the United States and not for distribution to United States newswire servicesVANCOUVER, BC / ACCESSWIRE / July 15, 2020 / Strategic Metals Ltd. (TSXV:SMD) (\"Strategic\" or the \"Company\") announces the closing of the second tranche of the brokered private placement (the \"Offering\") co-led by Agentis Capital Markets Canada Limited Partnership and Haywood Securities Inc. (collectively, the \"Agents\") as announced on June 18, 2020. The second tranche consisted of the sale of 2,578,594 flow-through units (the \"FT Units\") at a price of $0.64 each, each consisting of one flow-through common share and one common share purchase warrant (a \"Warrant\"), for gross proceeds of $1,650,300.16.Each Warrant entitles the holder to purchase one common share at a price of $0.65 until July 15, 2022.The net proceeds from the Offering will be used primarily to fund exploration activities and for general corporate and working capital purposes. The gross proceeds raised from the sale of the FT Units will be used for \"Canadian exploration expenses\" and will qualify as \"flow-through mining expenditures\" as defined in the Income Tax Act (Canada), which will be renounced to the initial purchasers of the FT Units with an effective date no later than December 31, 2020.The Company paid a cash commission equal to 6% of the gross proceeds from the second tranche to the Agents and has issued to the Agents a total of 583,500 Compensation Warrants, equal to 6% of the aggregate of 9,725,000 FT Units and Units sold under both the initial and second tranches of the Offering. Each Compensation Warrant entitles the holder to purchase one Unit at a price of $0.45 until July 15, 2022, each Unit to consist of one common share and one Warrant, each Warrant to entitle the holder to purchase one additional common share at a price of $0.65 for a period of 2 years from the date of issuance of those Warrants.All securities issued pursuant to the closing of the second tranche, including any securities that may be issued pursuant to the exercise of the Warrants or the Compensation Warrants, will be subject to a hold period in Canada until November 16, 2020.About Strategic Metals Ltd.Strategic is a project generator with a portfolio of more than 130 projects that ar...