Eric Sprott Announces Changes to His Holdings in Electric Metals (USA) Limited

Rhea-AI Summary

Eric Sprott disclosed that on October 24, 2025 his vehicle, 2176423 Ontario Ltd., bought 3,333,333 Units of Electric Metals (USA) Limited (OTC: EMUSF) at $0.30 per Unit for approximately $1,000,000. Each Unit contains one common share and one-half warrant; whole Warrants permit purchase of a share at $0.45 for 18 months.

Before the purchase he beneficially held 14,393,939 Shares and 4,166,666 Warrants; after the transaction he reported 17,727,272 Shares and 5,833,33 Warrants, representing about 8.8% non-diluted and 11.4% partially-diluted, which rose above 10% and prompted an early warning filing. Securities are held for investment and may be bought or sold in future depending on market conditions.

Positive

• Private placement of 3,333,333 Units on Oct 24, 2025 for ~$1,000,000
• Post-transaction stake reached 11.4% on a partially-diluted basis
• Units include Warrants exercisable at $0.45 for 18 months

Negative

• Warrant coverage creates potential dilution if exercised within 18 months
• Early warning filing signals concentrated insider ownership above 10%

Toronto, Ontario--(Newsfile Corp. - October 27, 2025) - Eric Sprott announces that on October 24, 2025, 2176423 Ontario Ltd., a corporation beneficially owned by him, acquired 3,333,333 units (Units) of Electric Metals (USA) Limited through a private placement, at $0.30 per Unit for total consideration of approximately $1,000,000. Each Unit consists of one common share (Share) and one-half of one Share purchase warrant (Warrant), with each whole Warrant entitling the holder to acquire one Share at $0.45 for 18 months from the date of issuance.

Prior to the acquisition, Mr. Sprott beneficially owned and controlled 14,393,939 Shares and 4,166,666 Warrants, representing approximately 7.7% of the outstanding Shares on a non-diluted basis and 9.7% of the outstanding Shares on a partially-diluted basis assuming exercise of such Warrants. Mr. Sprott now beneficially owns and controls 17,727,272 Shares and 5,833,33 Warrants, representing approximately 8.8% of the outstanding Shares on a non-diluted basis and 11.4% of the outstanding Shares on a partially-diluted basis assuming exercise of such Warrants, being an increase in holdings above 10% and, therefore, the filing of an early warning report.

The securities are held for investment purposes. Mr. Sprott has a long-term view of the investment and may acquire additional securities including on the open market or through private acquisitions or sell the securities including on the open market or through private dispositions in the future depending on market conditions, reformulation of plans and/or other relevant factors.

Electric Metals (USA)'s address is 2600 - 1066 West Hastings Street, Vancouver, British Columbia, V6E 1X1. A copy of the early warning report with respect to the foregoing will appear on Electric Metals (USA)'s profile on SEDAR+ at www.sedarplus.ca and may also be obtained by calling Mr. Sprott's office at (416) 945-3294 (2176423 Ontario Ltd., 7 King Street East, Suite 1106, Toronto, ON M5C 3C5).

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/271941

FAQ

What did Eric Sprott buy in Electric Metals (EMUSF) on October 24, 2025?

He acquired 3,333,333 Units at $0.30 per Unit via a private placement for about $1,000,000.

How many Electric Metals (EMUSF) shares does Eric Sprott own after the October 24, 2025 purchase?

He reported beneficial ownership of 17,727,272 Shares after the transaction.

Why did Eric Sprott file an early warning for Electric Metals (EMUSF)?

His post-transaction holdings exceeded 10% on a partially-diluted basis (11.4%), triggering the early warning requirement.

What are the warrant terms attached to the Units bought by Eric Sprott in EMUSF?

Each Unit included one-half Warrant; whole Warrants allow purchase at $0.45 for 18 months from issuance.

Where can investors find the early warning report for Eric Sprott's EMUSF holdings?

The early warning report will appear on Electric Metals (USA)'s SEDAR+ profile and is available by contacting Mr. Sprott's office.