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VANCOUVER, British Columbia, Oct. 10, 2024 (GLOBE NEWSWIRE) -- Founders Metals Inc. (TSX-V: FDR, OTCQX: FDMIF, FSE: 9DL0) (“Founders” or the “Company”) is pleased to announce that due to strong demand and oversubscription, it has increased the size of the previously announced private placement of common shares to 8,340,000 common shares (the “Common Shares”) at a price of C$2.40 for gross proceeds of approximately C$20 million (the “Offering”). The company previously entered into an agreement with a syndicate of underwriters led by BMO Capital Markets including Clarus Securities and Paradigm Capital.
In addition, Founders has agreed to terms on a non-binding letter of intent (“LOI”) with a major precious metals producer for a 5% equity investment (the “Strategic Investment”). Complete details of the transaction will follow in a separate release. The Company expects the aggregate proceeds of the Bought Deal and Strategic Investment to fully fund the 2025 exploration activities.
The Offering is expected to close on or about October 24, 2024 and is subject to the Company receiving all necessary regulatory approvals, including the approval of the TSX Venture Exchange. The Company intends to use the net proceeds of the Offering for exploration activities on the Antino Gold Project and for general corporate purposes.
The securities have not been, and will not be, registered under the 1933 Act, as amended, or any U.S. state securities laws, and may not be offered or sold in the United States without registration under the 1933 Act and all applicable state securities laws or compliance with the requirements of an applicable exemption therefrom. This press release shall not constitute an offer to sell or the solicitation of an offer to buy securities in the United States, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.
About Founders Metals Inc.
Founders Metals is a Canadian-based exploration company focused on advancing the Antino Gold Project located in Suriname, South America, in the heart of the Guiana Shield. Antino is 20,000 hectares and has produced over 500,000 ounces of gold from surface and alluvial mining to date1. The Company drilled 10,000 metres in 2023 and is fully financed for drilling in 2024.
12022 Technical Report – Antino Project; Suriname, South America. K. Raffle, BSc, P. Geo & Rock Lefrançois, BSc, P.Geo.
ON BEHALF OF THE BOARD OF DIRECTORS,
Per: "Colin Padget"
Colin Padget
President, Chief Executive Officer, and Director