Electric Metals (USA) Limited Closes $1.1 Million Non-Brokered Private Placement

Rhea-AI Summary

Electric Metals (USA) Limited (OTCQB:EMUSF) has successfully closed a non-brokered private placement, raising C$1.09 million through the issuance of 9,099,999 units at C$0.12 per unit. Each unit includes one common share and half a warrant, with each full warrant exercisable at C$0.20 for 18 months. The proceeds will fund the advancement of the Emily Manganese Project in Minnesota, focusing on developing domestic supply of high-purity manganese products for the U.S. EV battery sector. The funds will specifically support the preliminary economic assessment, technical and environmental studies, and development of a planned HPMSM facility. Canaccord Genuity Corp. received a 1% commission of $3,300 and 27,500 Finders' Warrants for their role in the offering.

Positive

• Successfully raised C$1.09 million in fresh capital
• Funds will advance the Emily Manganese Project towards developing domestic U.S. supply of high-purity manganese
• Strategic positioning in the growing EV battery sector supply chain

Negative

• Dilution of existing shareholders through new share issuance
• Relatively small financing amount may require additional future fundraising

Not for distribution to U.S. news wire services or dissemination in the United States

TORONTO, ON / ACCESS Newswire / May 20, 2025 / Electric Metals (USA) Limited ("EML" or the "Company") (TSXV:EML)(OTCQB:EMUSF) is pleased to announce the closing of its previously announced non-brokered private placement, raising gross proceeds of C$1,091,999 million. The financing will support the advancement of the Company's Emily Manganese Project in Minnesota, contributing to a critical U.S. domestic supply of high-purity manganese products, including high-purity manganese sulfate monohydrate (HPMSM), for the U.S. electric vehicle battery sector.

Under the Offering, the Company issued 9,099,999 units (the "Units") at a price of C$0.12 per Unit. Each Unit consists of one common share of the Company (a "Share") and one-half of one non-transferable common share purchase warrant (each whole warrant, a "Warrant"). Each Warrant entitles the holder to acquire one additional Share at an exercise price of C$0.20 for a period of 18 months. The Shares and any Shares issued upon exercise of the Warrants are subject to applicable hold periods in accordance with securities laws and exchange policies. No insiders participated in the Offering.

"This financing, together with our recent fundraising, positions Electric Metals in a strong position to advance the Emily Manganese Project in Minnesota and support the development of a secure, U.S. domestic supply of high-purity manganese products," said Brian Savage, CEO of Electric Metals.

Net proceeds will be used to advance key initiatives, including the preliminary economic assessment of the Emily Manganese Project, technical and environmental studies, studies related to the planned high-purity manganese sulfate monohydrate (HPMSM) facility, and for general working capital purposes.

In connection with the Offering, the Company paid finders who introduced subscribers to the Offering including: Canaccord Genuity Corp. a cash commission totaling $3,300 being up to 1% of the gross proceeds raised under the Offering from investors introduced to the Company from such finders, and 27,500 non-transferable common share purchase warrants of the Company ("Finders' Warrants"), being up to 1% of the Units sold under the Offering from investors introduced to the Company from such finders. Each Finder's Warrant entitles the holder to purchase one Common Share at a price of $0.20 for a period of 18 months.

About Electric Metals (USA) Limited

Electric Metals (USA) Limited (TSXV:EML)(OTCQB:EMUSF) is a US-based mineral development company with manganese and silver projects geared to supporting the transition to clean energy. The Company's principal asset is the Emily Manganese Project in Minnesota, the highest-grade manganese deposit in North America, which has been the subject of considerable technical studies, including National Instrument 43-101 Technical Reports - Resource Estimates. The Company's mission in Minnesota is to become a domestic US producer of high-value, high-purity manganese metal and chemical products to supply the North American electric vehicle battery, technology and industrial markets. With manganese playing a critical and prominent role in lithium-ion battery formulations, and with no current domestic supply or active mines for manganese in North America, the development of the Emily Manganese Project represents a significant opportunity for America, the State of Minnesota and for the Company's shareholders.

For further information, please contact:
Electric Metals (USA) Limited
Brian Savage
CEO & Director
(303) 656-9197

or

Valerie Kimball
Director Investor Relations
720-933-1150
info@electricmetals.com

Forward-Looking Information

This news release contains "forward-looking information" and "forward-looking statements" (collectively, "forward-looking information") within the meaning of applicable securities laws. Forward-looking information is generally identifiable by use of the words "believes," "may," "plans," "will," "anticipates," "intends," "could", "estimates", "expects", "forecasts", "projects" and similar expressions, and the negative of such expressions.

Such statements in this news release include, without limitation: the Company's mission to become a domestic US producer of high-value, high-purity manganese metal and chemical products to supply the North American electric vehicle battery, technology and industrial markets; that manganese will continue to play a critical and prominent role in lithium-ion battery formulations; that with no current domestic supply or active mines for manganese in North America, the development of the Emily Manganese Project represents a significant opportunity for America, Minnesota and for the Company's shareholders; and planned or potential developments in ongoing work by Electric Metals.

These statements address future events and conditions and so involve inherent risks, uncertainties and other factors that could cause actual events or results to differ materially from estimated or anticipated events or results implied or expressed in such forward-looking statements. Such risks include, but are not limited to, the failure to obtain all necessary stock exchange and regulatory approvals; investor interest in participating in the Offering; and risks related to the exploration and other plans of the Company. Forward-looking information is based on the reasonable assumptions, estimates, analysis and opinions of management made in light of its experience and perception of trends, updated conditions and expected developments, and other factors that management believes are relevant and reasonable in the circumstances at the date such statements are made. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information.

All forward-looking information herein is qualified in its entirety by this cautionary statement, and the Company disclaims any obligation to revise or update any such forward-looking information or to publicly announce the result of any revisions to any of the forward-looking information contained herein to reflect future results, events, or developments, except as required by law.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

SOURCE: Electric Metals (USA) Limited

View the original press release on ACCESS Newswire

FAQ

How much did Electric Metals USA (EMUSF) raise in their May 2025 private placement?

Electric Metals USA raised C$1,091,999 through a non-brokered private placement, issuing units at C$0.12 each.

What are the terms of EMUSF's May 2025 private placement warrants?

Each warrant entitles holders to purchase one additional share at C$0.20 for 18 months, with each unit including one-half warrant.

How will Electric Metals USA (EMUSF) use the proceeds from the private placement?

The proceeds will fund the Emily Manganese Project's preliminary economic assessment, technical and environmental studies, HPMSM facility studies, and working capital.

What is the strategic importance of Electric Metals' Emily Manganese Project?

The project aims to develop a critical U.S. domestic supply of high-purity manganese products for the electric vehicle battery sector.

What finder's fees did Electric Metals pay for the private placement?

Canaccord Genuity Corp. received a 1% cash commission of $3,300 and 27,500 non-transferable warrants exercisable at $0.20 for 18 months.