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Halifax, Nova Scotia--(Newsfile Corp. - August 1, 2024) - E-Tech Resources Inc. (TSXV: REE) (FSE: K2I) ("E-Tech" or the "Company") is pleased to announce the closing of its previously announced private placement of 12,000,000 units (each, a "Unit") at $0.05 per Unit. Each Unit consists of one common share of E-Tech (a "Common Share") and one-half common share purchase warrant (each whole warrant, a "Warrant") for gross proceeds of $600,000 (the "Financing"). Each Warrant entitles the holder to acquire one Common Share of E-Tech at an exercise price of $0.10 per share for a period of 24 months from closing. The proceeds from the private placement will be used to support the Company's ongoing exploration and operational activities as well as for general working capital purposes.
Numus Capital Corp., a registered Exempt Market Dealer, acted as agent for the Financing. In connection with the private placement, E-Tech paid the agent cash commissions of $24,500 and 490,000 broker warrants. Each broker warrant entitles the holder to acquire one Common Share at an exercise price of $0.10 and is exercisable for a period of 24 months from closing.
Directors and an officer of the Company subscribed for 1,800,000 Units. There has not been a material change in the percentage of the outstanding securities of the Company that are owned by each of these individuals. Wade Dawe, an Insider of the Company and a related party to the Company, subscribed for 3,200,000 Units. The percentage of outstanding securities owned or controlled by Wade Dawe increased from 13.97% to 15.4%.
The engagement of Numus Capital Corp., and the subscription by Insiders of the Company outlined below pursuant to the Financing constitute Related Party Transactions under Multilateral Instrument 61-101 Protection of Minority Security Holders in Special Transactions ("MI 61-101"). E-Tech has relied upon an exemption for formal valuation and minority shareholder approval required under sections 5.5(a) and 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. The Financing was unanimously approved by all members of the board of directors of the Company not in a declared conflict of interest.
The Financing remains subject to final approval of the TSXV. All securities issued pursuant to the Financing will be subject to a hold period lasting four-months and one day from the closing.
About E-Tech Resources Inc.