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New Age Metals Inc NMTLD


Primary Symbol: V.NAM

New Age Metals Inc. is a Canada-based junior mineral exploration and development company. The Company is focused on the discovery, exploration, and development of green metal projects in North America. The Company has two divisions: a Platinum Group Element division and a Lithium/Rare Element division. The Platinum Group Element Division includes the 100% owned, multi-million-ounce, district-scale River Valley Project, one of North America’s undeveloped Platinum Group Element Projects, situated 100 kilometers by road east of Sudbury, Ontario. The Company’s Lithium Division holds mineral claims in the Winnipeg River Pegmatite Field, where it is exploring for hard rock lithium and various rare elements such as tantalum, rubidium, and cesium. Its lithium projects include Lithium One, Lithman East, Lithman West, Lithman North, Lithium Two, Lithman East Extension, Cat Lake Lithium Project, Bird River Lithium, Lithium One West, Lithium One East, and Lithman East.


TSXV:NAM - Post by User

Post by Traderstock101on Aug 25, 2021 3:03pm
161 Views
Post# 33762074

New Age closes $2.07M second tranche of financing

New Age closes $2.07M second tranche of financing

2021-08-25 12:18 ET - News Release

Mr. Harry Barr reports

NEW AGE METALS RECEIVES SHAREHOLDER APPROVAL FOR NEW CONTROL PERSON AND CLOSES SECOND TRANCHE OF $2,075,000 WITH ERIC SPROTT

The shareholders of New Age Metals Inc. have approved the creation of 2176423 Ontario Ltd., a corporation beneficially owned by Eric Sprott, as a new control person of the company. The Company received approval from 97.85% of disinterested Shareholders.

Further to news release of March 26, 2021 and March 31, 2021, the Company has now completed the second tranche of its private placement ("Private Placement") raising additional proceeds of $2,075,000. The Company has issued 12,968,750 units ("Units") at a purchase price of $0.16 per Unit for proceeds of $2,075,000.

Each Unit consisted of one common share and one half of one share purchase warrant, whereby each whole warrant entitles the holder to purchase one additional common share at a purchase price of $0.20 per share at any time up to August 25, 2023.

Eric Sprott, through 2176423 Ontario Ltd., a corporation which is beneficially owned by him, acquired all 12,968,750 Units pursuant to the Private Placement for total consideration of $2,075,000. Prior to the Private Placement, Mr. Sprott beneficially owned or controlled 38,531,250 Common Shares and 26,265,625 Warrants. As a result of the Private Placement, Mr. Sprott beneficially owns and controls 51,500,000 Common Shares and 32,750,000 Warrants representing approximately 24.51% of the issued and outstanding shares of the Company on a non-diluted basis and approximately 34.70% of the issued and outstanding shares of the Company on a partially diluted basis, assuming the exercise of Warrants pursuant to the private placement.

The Units were acquired by Mr. Sprott for investment purposes. Mr. Sprott has a long-term view of the investment and may acquire additional securities of the Company including on the open market or through private acquisitions or sell securities of Company including on the open market or through private dispositions in the future depending on market conditions, reformulation of plans and/or other factors that Mr. Sprott considers relevant from time to time.

A copy of the applicable early warning report will appear on the Company's profile on SEDAR and may also be obtained by calling Mr. Sprott's office at (416) 945-3294 (200 Bay Street, Suite 2600, Royal Bank Plaza, South Tower, Toronto, Ontario M5J 2J1).

Mr. Sprott is an insider of the Company and, as such, his participation in the Private Placement is a related-party transaction under Multilateral Instrument 61-101 Protection of Minority Security Holders in Special Transactions (" MI 61-101 ") and TSX Venture Exchange Policy 5.9 (which incorporates by reference MI 61-101). The Company is relying on exemptions from the minority shareholder approval and formal valuation requirements applicable to related party transactions under sections 5.5(a) and 5.7(1)(a), respectively, of MI 61-101, as neither the fair market value of the Units to be purchased on behalf of Mr. Sprott nor the consideration to be paid by him exceeds 25% of the Company's market capitalization.

In connection with the second tranche of the Private Placement, the Company has paid finder fees to Research Capital Corporation of $134,875 in cash and issued 842,968 warrants. Each such warrant will be exercisable for two years at an exercise price of $0.16 per Unit (being the same as the per Unit price under the Private Placement).

All securities issued in connection with the private placement are subject to TSX Venture Exchange approval and a four-month and a day hold period expiring on December 26, 2021 in accordance with applicable Securities Laws.

The Company intends to use the net proceeds from the sale of Units towards its exploration and development work on its projects. The primary use of proceeds from this financing will be for the completion of a Pre-Feasibility Study and additional exploration for the Company's flagship River Valley Platinum Group Metals (PGM) Project, one of North America's largest undeveloped primary palladium projects, and for general corporate and working capital purposes .

About New Age Metals Inc.

New Age Metals is a junior mineral exploration and development company focused on the discovery, exploration and development of green metal projects in North America. The company has two divisions: a platinum group metals division and a lithium/rare element division.

The PGM division includes the 100-per-cent-owned, multimillion-ounce, district-scale River Valley project, one of North America's largest undeveloped platinum group metals projects, situated 100 kilometres from Sudbury, Ont. The company completed a positive preliminary economic assessment on the project in 2019 and is fully financed to complete a prefeasibility study on the project. A technical report is slated to be published by the end of the first half of 2022. In addition to River Valley, the company owns 100 per cent of the Genesis PGM-Cu-Ni project in Alaska, and has plans to complete a surface mapping and sampling program this year.

The lithium division is one of the largest mineral claim holders in the Winnipeg River pegmatite field, where the company is exploring for hard rock lithium and various rare elements such as tantalum and rubidium. The 2021 plans include drone geophysics on at least five of the company's seven projects and a maiden drill program on the company's Lithium Two project.

The company's philosophy is to be a project generator with the objective of optioning its projects with major and junior mining companies through to production. The company is actively seeking an option/joint venture partner for its road-accessible Genesis PGM-Cu-Ni project in Alaska and for all or part of its lithium division in Manitoba.


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