Due to Investor Demand iMetal Increases Size of Private Placement

Rhea-AI Summary

iMetal Resources Inc. (OTC PINK: ADTFF) has announced an increase to its non-brokered private placement due to strong market interest. The company will now offer up to 16,666,667 units at $0.12 each, potentially raising $2,000,000. Additionally, up to 6,666,667 flow-through units are available at $0.15 each for $1,000,000 more. Proceeds will support the development of the Gowganda West Project and the Kerrs Gold Deposit. This placement is subject to TSXV approval.

Positive

• The increase in the private placement indicates strong market interest, potentially boosting investor confidence.
• Proceeds from the placement will be utilized for project development, particularly at Gowganda West and the Kerrs Gold Deposit.

Negative

• The placement may lead to shareholder dilution as new units are issued.

VANCOUVER, BC / ACCESSWIRE / March 25, 2022 / iMetal Resources Inc. (TSXV:IMR) (OTC PINK:ADTFF) (FRA:A7V2) ("iMetal" or the "Company") announces that as a result of market interest it has elected to increase the size of its previously announced non-brokered private placement (the "Placement"). The Company will continue to offer up to 16,666,667 units (each, a "Unit") at a price of $0.12 per Unit for gross proceeds of up to $2,000,000. Each "Unit" will consist of one common share of the Company and one common share purchase warrant exercisable to acquire an additional common share at a price of $0.20 for a period of twenty-four (24) months (each, a "Warrant").

The Company will also offer up to 6,666,667 flow-through units (each, an "FT Unit") at a price of $0.15 per FT Unit for further gross proceeds of up to $1,000,000. Each "FT Unit" will also consist of one common share (each, an "FT Share") of the Company and one Warrant. The FT Shares will qualify as flow-through shares within the meaning of Subsection 66(15) of the Income Tax Act (Canada).

Proceeds from the Placement will be used for the development of the Company's Gowganda West Project, as well as development of the Kerrs Gold Deposit in the event the previously announced property option is consummated and for general working capital purposes. Completion of the Placement is not contingent on the acquisition of rights to the Kerrs Gold Deposit, and the Company will proceed with the Placement even if the acquisition is not consummated.

In connection with the Placement, the Company may pay finders' fees to eligible third-parties who have introduced subscribers to the Company. All securities issued in connection with the Placement will be subject to a four-month-and-one-day statutory hold period in accordance with applicable securities laws. Completion of the Placement remains subject to the approval of the TSX Venture Exchange.

About iMetal Resources Inc.
A Canadian based junior exploration company focused on the exploration and development of its portfolio of resource properties in Ontario and Quebec. iMetal is focused on advancing its Gowganda West Project that borders the Juby Project, an advanced exploration-stage gold project located within the Shining Tree Camp area in the southern part of the Abitibi Greenstone Gold Belt about 100 km south-southeast of the Timmins Gold Camp.

ON BEHALF OF THE BOARD OF DIRECTORS,

Saf Dhillon
President & CEO
iMetal Resources Inc.
saf@imetalresources.ca
Tel. (604-484-3031)
Suite 550, 800 West Pender Street, Vancouver, British Columbia, V6C 2V6.
https://imetalresources.ca

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 may include forward-looking statements that are subject to risks and uncertainties. All statements within, other than statements of historical fact, are to be considered forward looking. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include results of exploration, variations in results of mineralization, relationships with local communities, market prices, continued availability of capital and financing, and general economic, market or business conditions. There can be no assurances that such statements will prove accurate and, therefore, readers are advised to rely on their own evaluation of such uncertainties. We do not assume any obligation to update any forward-looking statements except as required under the applicable laws.

SOURCE: iMetal Resources, Inc.

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FAQ

What is the latest announcement from iMetal Resources regarding private placement?

iMetal Resources has increased its non-brokered private placement to offer up to 16,666,667 units at $0.12 each, aiming for $2,000,000.

How much can iMetal Resources raise from the flow-through units?

iMetal Resources can raise up to $1,000,000 from the sale of 6,666,667 flow-through units priced at $0.15 each.

What are the intended uses for the proceeds from the private placement?

Proceeds will be used for development of the Gowganda West Project and Kerrs Gold Deposit, along with general working capital.

Is the completion of the placement dependent on other acquisitions?

No, the completion of the placement is not contingent upon the acquisition of rights to the Kerrs Gold Deposit.

What is the status of the private placement's regulatory approval?

The completion of the private placement is subject to approval from the TSX Venture Exchange.