New Capital To Help Fund East Bull Lake Exploration
Grid Metals Corp. (TSXV:GRDM)(OTCQB:MSMGF) has closed the initial tranche of a private placement for gross proceeds of C$2,952,440.
A second tranche of the Offering is anticipated to close within approximately one week. Under the Offering, the company sold the following securities:
- 7,533,818 units of the company at a price of C$0.22 per Unit;
- 5,180,000 flow-through units of the company to traditional flow-through purchasers at a price of C$0.25 per FT Unit.
The net proceeds from the private placement will be used for exploration of the company’s mineral exploration properties including its East Bull Lake Palladium property and for general working capital purposes.
Proceeds from the sale of FT Shares will be used to incur “Canadian exploration expenses” as defined in subsection 66.1(6) of the Income Tax Act and “flow through mining expenditures” as defined in subsection 127(9) of the Income Tax Act.
Such proceeds will be renounced to the subscribers with an effective date not later than December 31, 2021, in the aggregate amount of not less than the total amount of gross proceeds raised from the issue of FT Shares.
Red Cloud Securities inc. acted as a finder in connection with a portion of the Offering.
Grid Metals Corp. is an exploration and development company that has three key projects focused on nickel, copper and platinum group metals. These commodities are vital to the emerging battery metals and automotive sectors. Grid’s projects are located in the provinces of Ontario and Manitoba Canada.
