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VANCOUVER, BC / ACCESSWIRE / December 6, 2024 / Storm Exploration Inc. (TSXV:STRM) (the "Company") today announced that it has closed a second and final tranche of the Company's non-brokered private placement (the "Offering"), for aggregate gross proceeds of $100,000 bringing the total proceeds for the financing to $502,500. The closing is subject to final acceptance of the TSX Venture Exchange.
Pursuant to the Offering, the Company has issued a total of 8,850,000 units (the "Units") at a price of $0.05 per Unit, and 1,000,000 flow-through units (the "FT Units") at a price of $0.06 per FT Unit. Each Unit consists of one common share of the Company and one warrant (a "Unit Warrant") entitling the holder thereof to acquire an additional common share (the "Warrant Share") of the Company at an exercise price of $0.10 per Warrant Share for a period of 24 months from the date of issuance. The FT Units consist of one flow-through common share of the Company and one warrant (a "FT Unit Warrant") entitling the holder thereof to acquire a (non-flow through) common share (the "NFT Warrant Share") of the Company at an exercise price of $0.12 per NFT Warrant Share for a period of 24 months from the date of issuance.
In connection with the closing of the Offering, the Company paid aggregate cash finders' fees of $18,000 to arm's length finders, representing 6% of the proceeds raised from subscriptions by certain placees introduced by the finders. The Company has also issued to the finders 288,000 non-transferable share purchase warrants (the "Finder's Warrants") entitling the purchase of an aggregate 288,000 common shares, on the same terms as the Unit Warrants and 60,000 non-transferable share purchase warrants (the "Finder's FT Warrants") entitling the purchase of an aggregate 60,000 common shares, on the same terms as the FT Unit Warrants.
The shares acquired by the placees under the Offering, and any shares which may be acquired upon the exercise of the various warrants issued under the offering, are subject to a hold period of four months and one day, in accordance with applicable Canadian securities legislation.
The proceeds from the Offering will be used to advance the Company's gold and base metal properties in northern Ontario and for general working capital purposes.
Two related party (as such term is defined in Multilateral Instrument 61-101 -Protection of Minority Security Holders in Special Transactions ("MI 61-101")) participated in the Offering and acquired an aggregate of 550,000 Units. This portion of the Offering constituted a related party transaction for the purposes of TSX Venture Exchange Policy 5.9 and MI 61-101. The Company relied on Section 5.5(a) of MI 61-101 for an exemption from the formal valuation requirement and Section 5.7(1)(a) of MI 61-101 for an exemption from the minority shareholder approval requirement of MI 61-101 as the fair market value of the transaction insofar as the transaction involved interested parties did not exceed 25% of the Company's market capitalization.