(TheNewswire)
April 21, 2022 – TheNewswire - Vancouver, British Columbia: Metallum Resources Inc. (TSXV:MZN) is pleased to report thatit has closed its previously announced non-brokered private placement with the issuanceof 87,371,674 units at $0.06 each, for gross proceeds of $5,242,300. Each unit consists of one common share of the Company and onewarrant which entitles the holder to purchase one additional common share at $0.14 for two years from closing.
In connection with the financing, the Company paidfinder’s fees totaling $245,400 cash and issued a total of 4,090,000warrants which have the same terms as described above. All commonshares and warrants issued on closing are subject to a resalerestriction until August 22, 2022.
As a result of participation in the placement byinsiders of the Company, the placement is considered to be a“related party transaction” within themeaning of TSX Venture Exchange Policy 5.9 and Multilateral Instrument 61-101 (“MI 61-101”). The Company hasrelied on the exemptions from the formal valuation and minorityshareholder approval requirements of MI 61-101 contained in sections5.5(b) and 5.7(a) of MI 61-101.
Funds raised from the financing are intended to be usedfor general working capital, and to accelerate the development of theCompany’s Superior Lake Zinc and Copper Project.
Board Changes
Adam Kiley has been appointed a Director of theCompany, in the place of David Cass who has stepped down from theBoard.
Adam Kiley has over 18 years’experience in the mining sector with a depth of experience inproviding corporate and financial advisory services. Adam holds aBachelor of Commerce from Curtin University in Western Australia. He is also currently a corporate developmentexecutive with Lotus Resources Limited (ASX:LOT) and Frontier Energy(ASX:FTE).
Kerem Usenmez, President and CEO, commented: “I amvery pleased in closing this over-subscribed financing, as we continueto develop our high-grade Zinc and Copper project. This new capitalwill keep the development of our project on schedule. We are excitedto be in a position to continue advancing the Superior Lake Projectand committed to providing materials for the green future and asustainable economy, in line with Ontario’s recently announcedCritical Minerals Strategy. This project has two of the criticalminerals recognized by Canada and the United States, at a very highgrade. We look forward to an incredibly promising future in Ontario aswe continue to rapidly move into development. The project location andthe existing infrastructure, along with access to clean energy,proximity to state of the art logistics, and a motivated and skilledworkforce make this an exciting project, with the right timing, as wesee commodities becoming more and more in demand. I also thank Davidfor his invaluable contributions to the Company thus far, and welcomeAdam to the Board as we move our company and the Project into thisadvanced stage.”
Simon Ridgway, Chairman of the Board, commented: “Wewould like to thank both existing and new shareholders for the strongsupport they provided in the recent capital raising. We are now inan exceptional strong position to advance our Superior Lake ZincProject, one of the highest grade zinc projects globally, at a timewhen the zinc price is near all time record highs.
I would also like to acknowledgemy appreciation for the many years of service David has provided toMetallum, including his contributions to the Board. We wish himwell . We welcome Adam Kiley to the MetallumBoard and look forward to benefitting from his extensive corporatedevelopment experience.”
About Metallum
Metallum Resources (TSXV:MZN) is developing itsSuperior Lake Zinc and Copper Project located in Ontario, Canada whichhas been advanced to the feasibility stage. For more information onthe project please visit metallumzinc.com .
Metallum is a member of the Gold Group of companies,led by Simon Ridgway. For further details about the Company and theSuperior Project, please visit the Company’s website at metallumzinc.com .
ON BEHALF OF THE BOARD
Kerem Usenmez,
President & Chief Executive Officer
Metallum Resources Inc.
Symbol: TSXV-MZN
For further information, contact:
Kerem Usenmez, President & CEO
Tel: 604-688-5288; Fax: 604-682-1514
Email: info@metallumzinc.com
Website: metallumzinc.com
Neither the TSX Venture Exchange northe Investment Industry Regulatory Organization of Canada acceptsresponsibility for the adequacy or accuracy of this release.
Cautionary NoteRegarding Forward-Looking Statements
Certain statements contained in thisnews release constitute forward-looking statements within the meaningof Canadian securities legislation. All statements included herein,other than statements of historical fact, are forward-lookingstatements and include, without limitation, statements about the useof the financing proceeds. Often, but not always, these forwardlooking statements can be identified by the use of words such as“estimate”, “estimates”, “estimated”, “potential”,“open”, “future”, “assumed”, “projected”, “used”,“detailed”, “has been”, “gain”, “upgraded”,“offset”, “limited”, “contained”, “reflecting”,“containing”, “remaining”, “to be”, “periodically”, orstatements that events, “could” or “should” occur or beachieved and similar expressions, including negative variations.
Forward-looking statements involveknown and unknown risks, uncertainties and other factors which maycause the actual results, performance or achievements of the Companyto be materially different from any results, performance orachievements expressed or implied by forward-looking statements. Suchuncertainties and factors include, among others, whether the financingproceeds will be spent as planned; whether exploration and developmentof the Company’s properties will proceed as planned; changes ingeneral economic conditions and financial markets; the Company or anyjoint venture partner not having the financial ability to meet itsexploration and development goals; risks associated with the resultsof exploration and development activities, estimation of mineralresources and the geology, grade and continuity of mineral deposits;unanticipated costs and expenses; risks associated with COVID-19including adverse impacts on the world economy, exploration effortsand the availability of personnel; and such other risks detailed fromtime to time in the Company’s quarterly and annual filings withsecurities regulators and available under the Company’s profile onSEDAR at www.sedar.com. Although the Company has attempted to identifyimportant factors that could cause actual actions, events or results todiffer materially from those described in forward-looking statements,there may be other factors that cause actions, events or results todiffer from those anticipated, estimated or intended.
Forward-looking statements containedherein are based on the assumptions, beliefs, expectations andopinions of management, including but not limited to: that thefinancing proceeds will be spent as planned; that the Company’sstated goals and planned exploration and development activities willbe achieved; that there will be no material adverse change affectingthe Company or its properties; and such other assumptions as set outherein. Forward-looking statements are made as of the date hereof andthe Company disclaims any obligation to update any forward-lookingstatements, whether as a result of new information, future events orresults or otherwise, except as required by law. There can be noassurance that forward-looking statements will prove to be accurate,as actual results and future events could differ materially from thoseanticipated in such statements. Accordingly, investors should notplace undue reliance on forward-looking statements.
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