December 1, 2016 / Vancouver, BC / NRG Metals Inc. (“NRG“ or the “Company”) (TSX-V: NGZ), (OTC Pink GPOFF), (Frankfurt OGPN), is pleased to announce that it has completed a non-brokered private placement of 15,150,000 units issued at a price of $0.10 per unit, raising gross proceeds of $1,515,000, in an oversubscribed round.
Each unit comprises one common share and one transferable common share purchase warrant exercisable for a period of two years at an exercise price of $0.20 per share, provided that in the event that the closing price of the Company’s common shares on the TSX Venture Exchange is $0.40 or greater per common share during any 20 consecutive trading day period at any time subsequent to four months and one day after the closing date, the warrants will expire at 4:00 p.m. (Vancouver time) on the 30th day after the date on which the Company provides notice of such accelerated expiry to the warrant holders, and the warrantholders will have no further rights to acquire any common shares of the Company under the warrant.
The Company paid finder’s fees of 10% cash and 10% finder’s warrants to Canaccord Genuity Corp., PI Financial Corp., Chelsie Hodge and P.J.K. & Associates Inc. The net proceeds of the private placement will be used to cover property payments, 43-101 technical report on the Carachi Pampa Lithium project, deposit for work provided for in the report (i.e. drill), corporate costs, exploration, completion of the Arrangement and for general working capital.
All securities issued pursuant to the private placement are subject to a four-month hold period.
In addition to the private placement, the Company has had a total of 4,440,000 share purchase warrants and 778,000 stock options exercised since September 30, 2016, for additional gross proceeds of $484,610.
The Company’s President and CEO, Adrian F.C. Hobkirk, quoted “With the completion of this private placement, and the financial support of warrant and option holders, the Company is now fully funded to carry out its exploration and acquisition strategy in the Lithium Triangle of Argentina and to complete the plan of arrangement to maximize shareholder value.”
The Company is now completing the necessary filings with the TSX Venture Exchange and other regulatory authorities to complete the acquisition of the Carachi Pampa Lithium Project, located in Argentina, and return the Company to trade. Other property negotiations are ongoing with further news expected in the immediate future.
On Behalf of the Board of Directors,
President, CEO and Director
The TSX Venture Exchange has not reviewed the content of this news release and therefore does not accept responsibility or liability for the adequacy or accuracy of the contents of this news release.
This news release contains certain “forward- looking statements” within the meaning of Section 21E of the United States Securities and Exchange Act of 1934, as amended. Except for statements of historical fact relating to the Company, certain information contained herein constitutes forward- looking statements. Forward-looking statements are based upon opinions and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors which could cause actual results to differ materially from those projected in the forward looking statements. The reader is cautioned not to place undue reliance on forward looking statements. The transaction described in this news release is subject to a variety of conditions and risks which include but are not limited to: regulatory approval, shareholder approval, market conditions, legal due diligence for claim validity, financing, political risk, security risks at the property locations and other risks. As such, the reader is cautioned that there can be no guarantee that this transaction will complete as described in this news release. We seek safe harbor.