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Vancouver, British Columbia--(Newsfile Corp. - September 23, 2024) - European Energy Metals Corp. (TSXV: FIN) ("European Energy" or the "Company") is pleased to announce that it has closed the second and final tranche (the "Second Tranche") of its previously announced non-brokered private placement of units ("Units") issued at a price of $0.125 per Unit (the "Private Placement").
Pursuant to the Second Tranche, the Company issued 670,000 Units for total gross proceeds of $83,750. The Company completed the first tranche of the Private Placement on September 9, 2024 and issued 15,795,000 Units for total gross proceeds of $1,974,375. In aggregate, pursuant to first tranche and the Second Tranche of the Private Placement, the Company issued 16,465,000 Units for total gross proceeds of $2,058,125.
Each Unit consists of one common share (a "Share") and one-half of a common share purchase warrant (each whole warrant, a "Warrant"). Each Warrant issued pursuant to the Second Tranche is exercisable
for one additional Share at an exercise price of $0.20 until September 23, 2026.
In connection with the Second Tranche, the Company has paid Leede Financial Inc. a cash commission of $1,312.50 and has also issued 10,500 non-transferable broker warrants (having the same terms as the Warrants) to Leede Financial Inc. as compensation.
All securities issued pursuant to the Second Tranche are subject to a statutory hold period of four months, expiring on January 24, 2025. The Company intends to use the net proceeds of the Private Placement for exploration work on its properties and for working capital.
The spouse of an insider of the Company has subscribed for 520,000 Units in the Second Tranche. The issuance of the Units to such person pursuant to the Private Placement is considered to be a Non-Arm's Length Transaction within the meaning of TSX Venture Exchange Policy 5.9- but is not considered to be a related party transaction within the meaning Multilateral Instrument 61-101 - PROTECTION OF MINORITY SECURITY HOLDERS IN SPECIAL TRANSACTIONS ("MI 61-101"). In the event such transaction was a related party transaction within the meaning of MI 61-101, the exemptions from the valuation and minority shareholder approval requirements of MI 61-101 contained in Sections 5.5(b) and 5.7(1)(a) of MI 61-101, respectively, would apply.
About European Energy Metals Corp.
European Energy Metals Corp. is a junior mining company currently focused on the lithium-cesium-tantalum Finnish pegmatite project in central Finland. Governing bodies in Europe and Finland are legislating environmentally friendly and energy-independent laws and policies. One of the key components is access to REE (rare earth elements) and, specifically, lithium. The Company's concessions are located within 15 kilometres of the Keliber mine and production complex, currently under construction and expected to begin production in the second half of 2025. The Company cautions the presence of lithium mineralization on Keliber's properties is not necessarily indicative of similar mineralization on the Company's mineral reservations.