EDM Announces Increase to Non-Brokered Private Placement of up to C$1.5M
Halifax, Nova Scotia--(Newsfile Corp. - October 11, 2024) - EDM Resources Inc. (TSXV: EDM) ("EDM" or the "Company") is pleased to announce that, further to its press release dated September 30, 2024, and due to strong investor demand, it has increased its previously announced non-brokered private placement (the "Offering") to comprise of up to 13,636,363 units of the Company ("Units") at a price per unit of C$0.11 (the "Unit"), for total gross proceeds of up to C$1,500,000.
Each Unit will consist of one common share of the Company (each, a "Common Share") and one common share purchase warrant (each whole warrant, a "Warrant"). Each whole Warrant will entitle the holder thereof to purchase one Common Share at a price of C$0.14 for a period of 36 months following the issue date of the Unit. Pursuant to applicable Canadian securities laws, the Common Shares and Warrants comprising of the Units are subject to a four month plus one day hold period from the closing date.
If during the exercise period of the Warrants, the Common Shares trade at or above a volume-weighted average trading price of $0.30 per Common Share for 10 consecutive trading days, the Company may accelerate the expiry time of the Warrants to 30 days from the date on which the Company provides written notice to the holders of the Warrants.
The proceeds of the Offering will be used to advance ongoing environmental and permitting work at our Scotia Mine and for general corporate working capital purposes.
Certain directors, officers and other insiders of the Company are expected to acquire securities under the Offering. Such participation will be a "related party transaction" as such term is defined in Multilateral Instrument 61-101- Protection of Minority Security Holders in Special Transactions ("MI 61-101") but is exempt from the valuation and minority shareholder approval requirements of MI 61-101.
In connection with the Offering, the Company may pay finder's fees to eligible non-related parties of up to 7% of the gross proceeds raised. Additionally, the Company may issue broker warrants ("Broker Warrants") equal to up to 7% of the Units sold. Each Broker Warrant will entitle the holder to purchase one Common Share at a price of C$0.11 per Common Share for a period of 36 months.
The Offering is expected to close in two tranches with the first tranche closing on or about October 17, 2024 and the second tranche on or about October 25, 2024.
The Offering is subject to TSX Venture Exchange approval.