New Energy Announces Private Placement With Strategic Investors
Vancouver, British Columbia – October 18, 2024 – New Energy Metals Corp. (TSXV: ENRG) (OTCQB: NRGYF) (“New Energy” or the “Company“) is pleased to announce that it has arranged a non-brokered private placement with arm’s length strategic investors consisting of 2,857,143 units (the “Units”) of the Company at a price of $0.35 per unit for gross proceeds of $1,000,000 (the “Offering”).
The Offering includes an over-allotment option that could increase the total gross proceeds to $1,200,000. Each Unit consists of one common share (each, a “Common Share”) of the Company and one-half of one transferable Common Share purchase warrant (each whole Common Share purchase warrant, a “Warrant”), with each Warrant exercisable for one Common Share (each a “Warrant Share“) at a price of $0.75 per Warrant Share for a period of twelve months from the closing of the Offering subject to the following acceleration provision:
If, at any time after the date of issuance of the Warrant, the closing price of the Company’s common shares on the TSX Venture Exchange (the “TSXV“) (or such other stock exchange on which the common shares may be traded from time to time) is at or above $1.10 per share for a period of 10 consecutive trading days (the “Triggering Event”), in which event the Company may, within 5 days of the Triggering Event, accelerate the expiry date of the Warrants by giving notice thereof to the holders of the Warrants, by way of a news release, and in such case, the Warrants will expire on the day that is 30 calendar days after the date on which such notice is given by the Company announcing the Triggering Event, and all rights of holders of such Warrants shall be terminated without any compensation to such holder.
Proceeds from the Offering are expected to be used for general corporate obligations and working capital purposes.
The closing of the Offering is subject to certain conditions, including, but not limited to, the approval of the TSXV.
All securities issued under the Offering will be subject to a hold period of four months and one day in Canada from the Closing of the Offering in accordance with the rules and policies of the TSXV and applicable Canadian securities laws.
This news release does not constitute an offer to sell or a solicitation of an offer to sell any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act“) or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.
ON BEHALF OF THE BOARD OF DIRECTORS,
New Energy Metals Corp.
Kenneth Kaczkowski
Chief Executive Officer
Tel: 305-280-4161
www.new-enrg.com
About New Energy Metals Corp.
New Energy Metals Corp. is a Canadian-based resource company listed on the TSX Venture Exchange under the symbol “ENRG”. The Company has an option to purchase a 100% interest in the Troitsa Copper property covering approximately 7,000 hectares located in the Omineca Mining Division of British Columbia.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This news release includes certain statements and information that may constitute forward-looking information within the meaning of applicable Canadian securities laws. Forward-looking statements relate to future events or future performance and reflect the expectations or beliefs of management of the Company regarding future events. Generally, forward-looking statements and information can be identified by the use of forward-looking terminology such as “intends” or “anticipates”, or variations of such words and phrases or statements that certain actions, events or results “may”, “could”, “should”, “would” or “occur”. This information and these statements, referred to herein as “forward-looking statements”, are not historical facts, are made as of the date of this news release and include without limitation, statements regarding discussions of future plans, estimates and forecasts and statements as to management’s expectations and intentions with respect to, among other things, the use of the proceeds raised under the Private Placement.
These forward-looking statements involve numerous risks and uncertainties and actual results might differ materially from results suggested in any forward-looking statements. These risks and uncertainties include, among other things, market uncertainty and that the Company will not use the proceeds of the Private Placement as currently anticipated. In making the forward looking statements in this news release, the Company has applied several material assumptions, including without limitation, that the Company will use the proceeds of the Private Placement as currently anticipated. Although management of the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements or forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements and forward-looking information. Readers are cautioned that reliance on such information may not be appropriate for other purposes. The Company does not undertake to update any forward-looking statement, forward-looking information or financial out-look that are incorporated by reference herein, except in accordance with applicable securities laws.
