Allied Critical Metals accomplishes the initial phase of an oversubscribed, non-brokered private placement, increasing the funding from the offering to a total of $5 million.
Allied Critical Metals Inc. (Allied) has announced the completion of its non-brokered private placement offering, successfully raising approximately $5.1 million. The offering, which was increased from an initial target of $4 million, saw the issuance of 17,013,786 units at $0.30 per unit.
The first tranche of the offering, which closed on July 28, 2021, raised gross proceeds of $4,499,095.80. A final tranche, expected to close on or about August 18, 2021, will add an additional $605,040 to the total. Each unit in the offering consists of one common share and one-half of one common share purchase warrant.
The net proceeds from the offering will be used for ongoing exploration and development activities on Allied's 100% owned Borralha and Vila Verde tungsten projects in northern Portugal, as well as for additional working capital.
In connection with the first tranche of the offering, the company paid finder's fees of $310,386.30 in cash and 1,034,621 Finders Warrants. The company may also pay finder's fees in connection with the final tranche of the offering.
The warrants in the offering entitle the holder to acquire one additional share at a price of $0.40 per warrant share and are exercisable for a period of 24 months from the date of issuance.
Roy Bonnell serves as the Chief Executive Officer and Director of Allied Critical Metals Inc. The offering is subject to approval of the Canadian Securities Exchange and will not result in the creation of a new insider or control person of the company.
The company has made forward-looking statements regarding the use of proceeds and the proposed timeline for the final tranche of the offering. These statements involve significant known and unknown risks, uncertainties, and assumptions. Prospective investors are advised to consider these statements carefully and not to place undue reliance on them.
For investor relations inquiries, please contact Dave Burwell, Vice President, Corporate Development, at Tel: 403 410 7907, Toll Free: 1-888-221-0915, or via email at [email protected].
The Canadian Stock Exchange does not accept responsibility for the adequacy or accuracy of this release. The company disclaims any intention or obligation to revise forward-looking statements except as required by law. This news release is not for distribution to U.S. news wire services or dissemination in the United States. The list of risks and uncertainties is not exhaustive, and reference should be made to the company's Listing Statement and news releases for a description of additional risk factors.
- With the successful completion of the non-brokered private placement offering, Allied Critical Metals Inc. has raised critical funds for business activities, such as exploration and development of their tungsten projects, and maintaining working capital.
- As the Canadian Securities Exchange approves the offering, investors in the industry, finance, and business sector may consider participating to acquire units, warrant shares, and ultimately gain exposure to the critical metals sector, with the potential for future profit.
