iMetal Resources Inc. has fully subscribed a non-brokered private placement to raise gross proceeds of $3,000,000. The financing, which remains subject to TSXV regulatory approval, involves the issuance of 30,000,000 units at a price of $0.10 per unit. Each unit comprises one common share and one transferable share purchase warrant, exercisable at $0.175 over a three-year term.

McFarlane Lake Mining Limited is the lead participant in the offering, subscribing for 14,200,852 units. Upon completion, this stake will grant McFarlane Lake Mining a 19.9% ownership interest in iMetal. The two companies have also entered into an investor rights agreement, effective upon the closing of the transaction, which entitles McFarlane Lake Mining to nominate one member to the iMetal board of directors. Additionally, the agreement allows the incoming partner to advise on exploration activities at iMetal’s flagship Gowganda West project.

Following the announcement, shares in iMetal closed at $0.145, an increase of 3.57% on the day.

“MLM's investment is a strong endorsement of Gowganda West and of the strategy we have been executing. Beyond the capital, this strategic investment brings us a partner with substantial Abitibi exploration experience and technical capability that can be applied directly to our flagship project.”

— Saf Dhillon, President & CEO

iMetal intends to allocate the net proceeds from the offering toward continued exploration at its project portfolio and for general working capital requirements. Completion of the financing is pending necessary regulatory approvals and acceptance from the TSXV. Following the close, the incoming partner's board nomination will proceed.

Read the full announcement: iMetal Resources Confirms Private Placement Is Fully Subscribed