On August 23, 2024, Flow Metals Corp. (CSE: FWM) successfully completed the first tranche of its non-brokered private placement, as previously disclosed on July 9, 2024. The company issued 3,300,000 non-flow-through common shares (NFT Shares) at a price of $0.05 per share, resulting in total gross proceeds of $165,000. Additionally, a finder’s fee of $1,200 was paid, and 24,000 non-transferable common share purchase warrants (Finder’s Warrants) were issued to a qualified party in connection with the placement. Each Finder’s Warrant entitles the holder to purchase one common share of the company at $0.065 per share within a 12-month period from the closing date.
The net proceeds from the private placement will be used for working capital and general corporate purposes. The company may further close one or more tranches of the private placement based on investor interest. All securities issued in the private placement will be subject to a four-month and one-day hold period as per Canadian securities laws, expiring on December 24, 2024.
Furthermore, four insiders of the company participated in the private placement and subscribed for a total of 2,900,000 shares. This insider participation constitutes a related-party transaction under Multilateral Instrument 61-101, for which the company has relied on exemptions from formal valuation and minority shareholder approval requirements.
It is important to note that this news release does not constitute an offer to sell securities in the United States, as the securities have not been registered under the U.S. Securities Act of 1933. Flow Metals Corp. is a mining exploration company focused on advancing its two road access projects in established mining districts – Sixtymile in the Yukon gold project and New Brenda in the copper-silver-molybdenum porphyry project.
This press release may contain forward-looking information regarding the company’s business. While the company believes such information is reasonable, investors should not solely rely on it as uncertainties could cause results to differ materially. The Canadian Securities Exchange has not approved or disapproved the content of this news release. For more details, please refer to the original press release at https://www.newsfilecorp.com/release/220991.
