Appia Announces Non-Brokered Private Placement

Rhea-AI Summary

Appia Rare Earths & Uranium Corp. (CSE: API) has announced a non-brokered private placement offering of up to 4,166,666 flow-through units at $0.12 per unit, aiming to raise up to $500,000. Each unit includes one flow-through common share and one warrant, with warrants exercisable at $0.15 for one year. The offering is scheduled to close on December 31, 2024.

Eligible finders will receive a 6% cash commission and broker warrants equal to 6% of placed units. The proceeds will be used for Canadian Exploration Expenses qualifying as flow-through critical mineral mining expenditures on the company's Saskatchewan properties. These expenses will be eligible for the critical mineral exploration tax credit.

Positive

• Raising up to $500,000 in new capital for exploration
• Expenses qualify for critical mineral exploration tax credit
• Warrants provide potential additional funding at $0.15 per share

Negative

• Potential dilution for existing shareholders
• 6% finder's fees reduce net proceeds
• Short warrant exercise period of only one year

Toronto, Ontario--(Newsfile Corp. - December 23, 2024) - Appia Rare Earths & Uranium Corp. (CSE: API) (OTCQB: APAAF) (FSE: A0I0) (MUN: A0I0) (BER: A0I0)(the "Company" or "Appia") is pleased to announce a non-brokered private placement of up to 4,166,666 flow-through units ("FT Units") at a price of $0.12 per FT Unit for up to $500,000 (the "Offering"). Closing of the Offering is scheduled for December 31, 2024.

Each FT Unit comprises one (1) flow-through Common Share ("FT Share") priced at $0.12 per FT Share and one (1) common share purchase warrant (a "Warrant") with each Warrant entitling the holder to acquire one (1) common share of the Company (a "Warrant Share") at a price of $0.15 until one (1) year from the closing of the Offering ("Closing").

Eligible finders will be paid 6% cash and be issued broker warrants equal to 6% of the number of FT Units placed by the finder. Each broker warrant issued entitles the holder to acquire one (1) common share of the Company at a price of $0.15 until two (2) years from Closing.

The gross proceeds from the FT Offering will be used for Canadian Exploration Expenses (within the meaning of the Income Tax Act (Canada) (the "Tax Act")) which qualify as a "flow-through critical mineral mining expenditure" for purposes of the Tax Act related to the exploration program of the Company to be conducted on the Company's properties located in Saskatchewan. The Company will renounce such Canadian Exploration Expenses with an effective date of no later than December 31, 2024. The Canadian Exploration Expenses to be renounced by the Company will qualify for the critical mineral exploration tax credit under the Tax Act.

The securities described herein 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 accordingly, may not be offered or sold within the United States except in compliance with the registration requirements of the U.S. Securities Act and applicable state securities requirements or pursuant to exemptions therefrom. This press release does not constitute an offer to sell or a solicitation to buy any securities in any jurisdiction.

About Appia Rare Earths & Uranium Corp. (Appia)

Appia is a publicly traded Canadian company in the rare earth element and uranium sectors. The Company holds the right to acquire up to a 70% interest in the PCH Ionic Adsorption Clay Project (See June 9th, 2023 Press Release - Click HERE) which is 42,932.24 ha in size and located within the Goiás State of Brazil. (See January 11th, 2024 Press Release - Click HERE) The Company is also focusing on delineating high-grade critical rare earth elements and gallium on the Alces Lake property, and exploring for high-grade uranium in the prolific Athabasca Basin on its Otherside, Loranger, North Wollaston, and Eastside properties. The Company holds the surface rights to exploration for 94,982.39 hectares (234,706.59 acres) in Saskatchewan. The Company also has a 100% interest in 13,008 hectares (32,143 acres), with rare earth elements and uranium deposits over five mineralized zones in the Elliot Lake Camp, Ontario.

Appia has 149.4 million common shares outstanding, 170.8 million shares fully diluted.

Cautionary note regarding forward-looking statements: This News Release contains forward-looking statements which are typically preceded by, followed by or including the words "believes", "expects", "anticipates", "estimates", "intends", "plans" or similar expressions. Forward-looking statements are not a guarantee of future performance as they involve risks, uncertainties and assumptions. We do not intend and do not assume any obligation to update these forward-looking statements and shareholders are cautioned not to put undue reliance on such statements.

Neither the Canadian Securities Exchange nor its Market Regulator (as that term is defined in the policies of the CSE) accepts responsibility for the adequacy or accuracy of this release.

For more information, visit www.appiareu.com

As part of our ongoing effort to keep investors, interested parties and stakeholders updated, we have several communication portals. If you have any questions online (X, Facebook, LinkedIn) please feel free to send direct messages.

To book a one-on-one 30-minute Zoom video call, please click here.

Contact:

Tom Drivas, CEO and Director 
(c) (416) 876-3957 
(e) tdrivas@appiareu.com 

Stephen Burega, President
(c) (647) 515-3734
(e) sburega@appiareu.com

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To view the source version of this press release, please visit https://www.newsfilecorp.com/release/235012

FAQ

What is the size and price of Appia's December 2024 private placement?

Appia is offering up to 4,166,666 flow-through units at $0.12 per unit, aiming to raise up to $500,000.

What are the warrant terms in Appia's December 2024 private placement?

Each warrant allows holders to purchase one common share at $0.15 for a period of one year from closing.

How will Appia use the proceeds from the December 2024 private placement?

The proceeds will be used for Canadian Exploration Expenses qualifying as flow-through critical mineral mining expenditures on the company's Saskatchewan properties.

What are the finder's fees for Appia's December 2024 private placement?

Eligible finders will receive 6% cash commission and broker warrants equal to 6% of the units placed, with warrants exercisable at $0.15 for two years.