Giyani Closes Private Placement Financing
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OAKVILLE, Ontario, Sept. 18, 2020 (GLOBE NEWSWIRE) -- Giyani Metals Corp. (TSXV:EMM, GR:A2DUU8) ("Giyani" or the "Company") is pleased to announce that the partly brokered private placement financing (the "Private Placement"), as initially announced on September 4, 2020 and increased in size on September 11, 2020, has closed. The Private Placement was fully subscribed and comprised of 9,600,000 units (each, a "Unit") at a price of $0.125 per Unit for gross proceeds of $1.2 million in immediately available new funding.
Each Unit consists of one (1) common share (each, a "Common Share") and one half (½) of one Common Share purchase warrant. Each whole warrant will entitle the holder to purchase one Common Share at an exercise price of $0.20 per share until the date that is 18 months from the date of issue.
In connection with the Private Placement, Giyani also issued 358,320 finder's warrants which entitle the holders thereof to purchase common shares for 18 months at a purchase price per common share of $0.125.
The net proceeds from the Private Placement will be used for working capital requirements and other general corporate purposes.
Insiders and management of Giyani subscribed for an aggregate of 2,347,668 Units or 24% of the Private Placement, which subscriptions are considered related party transactions within the meaning of TSX Venture Exchange (the "TSXV") Policy 5.9 and Multilateral Instrument 61-101 Protection of Minority Security Holders in Special Transactions ("MI 61-101"). The Company relied on exemptions from the formal valuation and minority approval requirements in sections 5.5(a) and 5.7(1)(a) of MI 61-101 in respect of the insider subscriptions.
The Private Placement is subject to the final acceptance of the TSXV. All securities issued are subject to a statutory four month and one day hold period, which will end on January 19, 2021.
Robin Birchall, CEO of Giyani Metals Corp. commented:
"I am delighted with the success of the Private Placement. I believe we are at an inflection point in the awareness of manganese in the battery electric vehicle market and expect increasing exposure in the coming months. We are working hard towards the completion of the feasibility study on our flagship K.Hill project in Botswana, expected to be completed in H1 next year. In the meantime, we continue to fine tune the preliminary economic assessment, last released on 28 April 2020, to include our most up to date assumptions and modified product mix, as announced on 3 September 2020. We will update the market on this work in due course."