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Velox Energy Materials Closes Private Placement of $1.5 Million
All amounts expressed are in Canadian dollars Toronto, Ontario--(Newsfile Corp. - December 6, 20...
About this update from Velox Energy Materials Inc
[{"type":"text","content":"Velox Energy Materials Closes Private Placement of $1.5 MillionAll amounts expressed are in Canadian dollarsToronto, Ontario--(Newsfile Corp. - December 6, 2023) - Velox Energy Materials Inc. (TSXV: VLX) (\"Velox\" or \"the Company\") is pleased to announce that, following the announcement last week, it has received all the sub-agreements to close a non-brokered private placement of 30,000,000 Units for gross proceeds of $1.5 million (\"the Placement\") with a subscription price of $0.05 per Unit. Each Unit consists of one Common Share and one Common Share Purchase Warrant (\"Warrant\"). Each Warrant entitles the holder to purchase one Common Share of the Company at $0.075 for a period of 24 months from Closing Date, subject to certain Warrant expiry acceleration terms. The Company reserves and maintains the right to accelerate the expiry of the Warrants, in whole or in part, upon providing notice of acceleration if the 20-day volume-weighted average price of the Common Shares on the Company's primary stock exchange is greater than $0.15 per Common Share. The Units were issued on December 5, 2023.The proceeds from the Placement will be used to progress the development of Velox's flagship North Queensland Vanadium Project (\"NQVP\"), with planned activities for NQVP including:Metallurgical testwork, sampling and baseline flowsheet optimizationMineral Resource update for the Cambridge DepositAircore drilling to delineate high-grade zones at the Cambridge DepositGlobal Mineral Resource updates; and Environmental studiesIn addition, the Company will use the proceeds towards a planned dual listing on the ASX via a CDI listing in early 2024.In connection with the closing, the Company will pay a cash fee of $90,000 and issue 900,000 warrants (the \"Finders' Warrants\") to eligible Finders. Each Finder Warrant entitles the holder to acquire one common share at a price of $0.075 per share for a period of 24 months from the Closing Date. The participation by two directors of the Company in the financing for C$175,000 or 3,500,000 Units constitutes a \"related party transaction\" pursuant to Multilateral Instrument 61-101 Protection of Minority Security Holders in Special Transactions (\"MI 61-101\"). The Company intends to rely on the exemptions from the formal valuation and minority shareholder approval requirements of MI 61-101 containe...