Electric Metals (USA) Limited Closes $3.0 Million Non-Brokered Private Placement Led by Eric Sprott and Crescat Capital
Rhea-AI Summary
Electric Metals USA has successfully closed a C$3.0 million non-brokered private placement, spearheaded by notable investors Eric Sprott and Crescat Capital. The company issued 25,000,331 units at C$0.12 per unit, with each unit comprising one common share and half a warrant exercisable at C$0.20 for 18 months.
The funding will advance the Emily Manganese Project in Minnesota, aimed at developing a domestic supply of high-purity manganese sulfate monohydrate (HPMSM) for U.S. electric vehicle batteries. This initiative addresses a critical supply chain gap, as 96% of HPMSM is currently produced in China.
The proceeds will support key initiatives including:
- Preliminary economic assessment
- Technical and environmental studies
- HPMSM facility planning
- Working capital needs
Crescat Capital's CEO highlights that HPMSM demand is projected to increase 29x by 2050, positioning Electric Metals' highest-grade manganese deposit in North America as a strategic asset.
Positive
- Secured C$3.0 million financing led by prominent investors Eric Sprott and Crescat Capital
- Project targets high-growth HPMSM market with 29x demand increase expected by 2050
- Holds highest-grade manganese deposit in North America
- Strategic positioning to benefit from U.S. critical minerals initiatives
- Low 3% finder's fee indicates strong direct investor interest
Negative
- Share dilution through issuance of 25,000,331 new units at C$0.12
- Additional potential dilution from warrant exercise at C$0.20
- Project still in early stages requiring preliminary economic assessment
- Related party transactions with directors purchasing shares
- Requires significant capital expenditure for HPMSM facility development
AI-generated analysis. How Rhea-AI works. Not financial advice.
TORONTO, ON / ACCESS Newswire / April 29, 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 approximately C
Under the Offering, the Company issued 25,000,331 units (the "Units") at a price of C
Eric Sprott and Crescat Capital participated as the cornerstone investors, reinforcing the Company's long-term strategy and strengthening its shareholder base. The Offering also attracted additional institutional and accredited investors, both new and returning, demonstrating broad confidence in the Company's growth prospects.
Kevin Smith, CFA, Founder and CEO of Crescat Capital, commented: "High-purity manganese sulfate monohydrate (HPMSM) demand is expected to increase 29x by 2050 because it's critical for electric vehicle batteries.
"This financing puts 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. "We're especially pleased to have the support of Eric Sprott, Crescat Capital, and other respected institutional and accredited investors."
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.
This financing aligns with recent U.S. policy initiatives aimed at strengthening domestic critical mineral supply chains. The Emily Manganese Project is uniquely positioned to support these national objectives by reducing reliance on foreign sources of manganese and reinforcing U.S. economic and energy security.
In connection with the the Offering, the Company paid certain finders who introduced subscribers to the Offering including: Canaccord Genuity Corp. and Cormark Securities Inc. a cash commission totaling
Under the Offering, directors of the Corporation have subscribed for a total of 333,333 Shares for a total consideration of C
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
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