Mr. Peter Hemstead reports
FIREWEED METALS INCREASES PRIVATE PLACEMENT TO C$41.7M MILLION
Fireweed Metals Corp., due to strong demand, has elected to increase the previously announced non-brokered private placement.
The increased offering consists of two parts for gross proceeds of approximately $41.74-million as follows:
- 12,727,273 common shares of the company at a price of $1.10 per share;
- 16,128,243 flow-through common shares of the company issued through a charitable donation arrangement (premium flow-through shares).
The proceeds from the offering will be used for exploration and development of the company's projects in northern Canada, and for general working capital purposes. The gross proceeds from the issuance of premium flow-through shares will be used on the company's projects to incur Canadian exploration expenses (CEE), with the largest portion qualifying as flow-through critical mineral mining expenditures under the Income Tax Act (Canada). These expenses will be renounced by the company to the purchasers of premium flow-through shares with an effective date no later than Dec. 31, 2024, in an aggregate amount no less than the proceeds raised from the issue of premium flow-through shares. The issuance of any common shares to insiders will constitute a related party transaction, as defined under Multilateral Instrument 61-101. Such participation will be exempt from the formal valuation and minority shareholder approval requirements of MI 61-101 as neither the fair market value of the securities acquired by the insiders, nor the consideration for the securities paid by such insiders, will exceed 25 per cent of the company's market capitalization.
Closing of the offering is subject to certain customary conditions, including, but not limited to, the receipt of all necessary regulatory approvals and acceptance of the TSX Venture Exchange. All securities issued under the offering will be subject to a statutory hold period of four months plus a day following the date of closing.
The company anticipate closing of the private placement as soon as practicable subject to the receipt of all necessary regulatory approvals. The Lundin family trusts will acquire common shares under the private placement. Any such participation would be considered to be a related party transaction, as defined under Multilateral Instrument 61-101. The transactions will be exempt from the formal valuation and minority shareholder approval requirements of MI 61-101 as neither the fair market value of any common shares issued to, nor the consideration paid, by such persons would exceed 25 per cent of the company's market capitalization.
Qualified person statement
Technical information in this news release has been approved by Fireweed Metals vice-president, geology, Jack Milton, PGeo (British Columbia), a qualified person as defined under Canadian National Instrument 43-101.
About Fireweed Metals Corp.
Fireweed Metals is an exploration company unlocking significant value in a new critical metals district located in Yukon, Canada. Fireweed is 100-per-cent owner of the Macpass district, a large and highly prospective 977-square-kilometre land package. The Macpass district includes the Macpass zinc-lead-silver project and the Mactung tungsten project, both characterized by meaningful size, grade and opportunity. At the Macpass project, Fireweed owns one of the largest undeveloped zinc resources worldwide, in a region with enormous exploration potential. The Mactung project is a strategic critical metals asset that hosts the world's largest high-grade tungsten resource -- a potential long-term supply of tungsten for North America. A Lundin group company, Fireweed is strongly positioned to create meaningful value.
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