Giga Metals Completes Non-Brokered Private Placement of Flow-Through Shares
MWN-AI** Summary
Giga Metals Corp., based in Vancouver, British Columbia, has successfully closed a non-brokered private placement of Flow-Through shares, raising a total of $900,000. This transaction involved the issuance of 8,181,818 flow-through shares at a price of $0.11 per share. The proceeds from this placement are earmarked for advancing exploration activities at the company's Turnagain project, as well as any other eligible Canadian properties the company may acquire in the future.
The company has committed to using an amount equal to the gross proceeds from the sale of the flow-through shares to incur eligible "Canadian exploration expenses," defined as "flow-through mining expenditures" under the Tax Act. These expenses are required to be incurred by December 31, 2027, with the associated tax benefits to be renounced to investors by December 31, 2026. The issued securities will have a hold period that expires on July 21, 2026.
Additionally, Giga Metals will pay finder’s fees amounting to 8% of the total proceeds raised, which will be compensated with common shares, and has also granted 654,545 finder's warrants to investors, allowing them to purchase common shares at $0.11 per share until March 20, 2027. Notably, the private placement did not create any control blocks.
Giga Metals' core asset, the Turnagain project, is notable for containing significant undeveloped resources of nickel and cobalt, and is a joint venture with Mitsubishi Corporation. The recent pre-feasibility study released in October 2023 highlights its potential, including prospective mineralization of copper, platinum, and palladium. Forward-looking statements in this release indicate the company's anticipated pathways, though such outcomes are subject to various risks and uncertainties.
MWN-AI** Analysis
Giga Metals Corp.'s recent completion of a non-brokered private placement of flow-through shares, raising $900,000 through the issuance of 8,181,818 shares at $0.11 each, indicates a strategic move to bolster exploration activities at its Turnagain project. This funding is essential as the company aims to capitalize on its significant undeveloped sulphide nickel and cobalt resources, which are crucial for the growing demand for battery metals in electric vehicles and renewable energy sectors.
This investment comes at a critical time, as Giga Metals prepares to advance its Pre-Feasibility Study (released in October 2023) and further explore the potential of additional mineralization occurrences like copper, platinum, and palladium in adjacent areas. The stipulated flow-through expenses, which need to be incurred by December 31, 2027, reflect a commitment to exploring Canada’s resource potential while offering tax advantages to investors.
Investors should note the implemented 4-month hold period for the newly issued shares, prohibiting immediate liquidity and possibly resulting in price volatility post-expiration. However, the financing terms, including an 8% finder’s fee and associated warrants at the same share price, provide an opportunity for further upside potential if the exploration yields favorable results.
Given the rising global focus on sustainable mining and the electrification of transportation, Giga Metals is positioned to benefit significantly in the medium to long term. However, investors should remain vigilant regarding the inherent risks associated with exploration-stage projects and the potential volatility in commodity prices. The success of the Turnagain project, coupled with effective execution of exploration plans, could offer substantial rewards for early investors willing to navigate the inherent uncertainties in the mining sector.
**MWN-AI Summary and Analysis is based on asking OpenAI to summarize and analyze this news release.
NOT FOR DISTRIBUTION TO U.S. NEWSWIRES OR DISSEMINATION IN THE UNITED STATES
VANCOUVER, British Columbia, March 20, 2026 (GLOBE NEWSWIRE) -- Giga Metals Corp. (“Giga Metals” or the “Company”) (TSX-V: GIGA; OTCQB: GIGGF; FSE: BRR2) is pleased to announce that further to its news release dated March 17, 2026, the Company has closed its previously announced private placement of Flow-Through shares for aggregate proceeds of $900,000. The company closed on 8,181,818 FT shares at a price of $0.11.
The flow-through proceeds of the Private Placement will be used to advance exploration activities at the Turnagain project and any other Canadian properties that the Company may acquire, provided that the Company will use an amount equal to the gross proceeds received by the Company from the sale of the FT Shares to incur eligible “Canadian exploration expenses” that will qualify as “flow-through mining expenditures” as such terms are defined in the “Tax Act”; and will be incurred on or before December 31, 2027 and renounced with an effective date no later than December 31, 2026 to the initial purchasers of FT Shares.
The securities issued have a hold period expiring 4 months plus one day after issuance, being July 21, 2026.
In connection with the Private Placement, the Company will pay finder's fees of 8% of the aggregate proceeds raised, payable in common shares of the Company. In addition, the Company will issue 654,545 finder's warrants. Each finder’s warrant will entitle the holder to purchase one common share of the Company at a price of $0.11 per common share for a period of one (1) year following the date of issuance, being March 20, 2027.
No control blocks were created as a result of the private placement.
About Giga Metals Corporation
Giga Metals Corporation’s core asset is the Turnagain Project located in northern British Columbia, which contains one of the few significant undeveloped sulphide nickel and cobalt resources in the world. Turnagain is held in Hard Creek Nickel, a subsidiary owned jointly by Giga Metals Corporation and Mitsubishi Corporation. The Pre-Feasibility Study was released in October 2023. The Turnagain ultramafic complex is also prospective for copper, platinum and palladium mineralization in the Attic Zone, an area adjacent to the known nickel resource.
Forward-looking Statements
Certain statements in this news release are forward-looking statements, which reflect the expectations of the Company. Forward-looking statements consist of statements that are not purely historical, including any statements regarding beliefs, plans, expectations or intentions regarding the future. Such statements include, but are not limited to, completion of the Private Placement and any additional funding for the Turnagain Project. No assurance can be given that any of the events anticipated by the forward-looking statements will occur or, if they do occur, what benefits the Company will obtain from them. These forward-looking statements reflect management's current views and are based on certain expectations, estimates and assumptions which may prove to be incorrect. A number of risks and uncertainties could cause our actual results to differ materially from those expressed or implied by the forward-looking statements, including: the conditions to closing of the Private Placement may be not be satisfied; the Company may not be able to locate suitable investors for the Private Placement and the terms for any additional funding of the Turnagain Project may not be finalized. These forward-looking statements are made as of the date of this news release and, except as required by applicable securities laws, the Company assumes no obligation to update these forward-looking statements, or to update the reasons why actual results differed from those projected in the forward-looking statements.
On behalf of the Board of Directors of Giga Metals Corporation
“Scott Lendrum”
SCOTT LENDRUM,
CEO and Director
Contact Information
Office Phone: +1 (604) 681-2300
Investor Inquiries: info@gigametals.com
Company Website: www.gigametals.com
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Suite 604 – 700 West Pender St., Vancouver, BC, Canada V6C 1G8
FAQ**
What specific exploration activities will Giga Metals Corp GIGGF prioritize at the Turnagain project, funded by the private placement proceeds of $900,000?
How does Giga Metals Corp GIGGF plan to ensure that the Canadian exploration expenses comply with the definitions outlined in the Tax Act for the flow-through shares?
With the issuance of finder’s warrants linked to the private placement, what strategy does Giga Metals Corp GIGGF have in place to attract further investment and shareholder interest within the next year?
Given the uncertainties highlighted in the forward-looking statements, what measures is Giga Metals Corp GIGGF taking to mitigate risks associated with potential project delays or funding challenges?
**MWN-AI FAQ is based on asking OpenAI questions about Giga Metals Corporation (TSXVC: GIGA:CC).
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