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Halifax, Nova Scotia--(Newsfile Corp. - July 22, 2024) - E-Tech Resources Inc. (TSXV: REE) (FSE: K2I) ("E-Tech" or the "Company") is pleased to announce that it plans to raise up to $600,000 through a private placement (the "Financing") of up to 12,000,000 units of E-Tech (each, a "Unit") at $0.05 per Unit. Each Unit will consist of one common share of E-Tech (a "Common Share") and one-half common share purchase warrant (each whole warrant, a "Warrant"). Each Warrant will be exercisable to purchase one Common Share of E-Tech at a price of $0.10 per share for a period of 24 months from the closing date of the Financing (the "Closing Date"). The proceeds from the private placement will be utilized to support the Company's ongoing exploration and operational activities.
To facilitate the Financing, E-Tech has entered into an agreement with Numus Capital Corp., a registered exempt market dealer, to act as agent for the Financing. E-Tech has agreed to pay to the agent a cash fee equal to 7% of proceeds raised from investors introduced by the agent and to issue compensation warrants entitling the agent to purchase that number of Common Shares as is equal to seven percent (7%) of the Units sold to investors introduced by the agent. Each compensation warrant will be exercisable into a Common Share of E-Tech at $0.10 per share for a period of 24 months from closing.
The engagement of Numus Capital Corp. and the Financing may constitute Related Party Transactions under Multilateral Instrument 61-101, Protection of Minority Security Holders in Special Transactions ("MI 61-101"). E-Tech is relying upon an exemption for shareholder approval required under section 5.7(1)(a) of MI 61-101 on the basis that any related party elements of such transactions would not exceed 25% of market capitalization of E-Tech.
Completion of the Financing is subject to the satisfaction of certain conditions, including the approval of the TSX Venture Exchange, and all securities issued pursuant to the Financing will be subject to a four-month and one day hold period.
About E-Tech Resources Inc.
E-Tech is a rare earth exploration and development company focused on developing its Eureka Rare Earths Project in Namibia. The Eureka project is located approximately 250 km north-west of Namibia's capital city Windhoek and 140 km east of Namibia's main industrial port Walvis Bay. The project is crossed by the national B1 highway and right next to the main national railroad line.