Neotech Metals closes $3.08M private placement

Neotech Metals Corp. (CSE: NTMC) (OTCQB: NTMFF) (FSE: V690) has closed a non-brokered private placement, raising gross aggregate proceeds of $3,080,138, according to a press release from the Vancouver-based mineral exploration company.

The offering consisted of two tranches. The company issued 4,199,422 non-flow-through units at $0.28 each, generating $1,175,838, and 4,882,820 flow-through units at $0.39 each, generating $1,904,300. Each unit included one common share and one-half of a share purchase warrant, with each whole warrant exercisable at $0.45 per share for three years.

Net proceeds from the flow-through units will be directed toward qualified expenditures on the company's mineral properties, while proceeds from the non-flow-through units will be used for general working capital.

The company paid $5,382 in finder's fees and issued 13,800 finder's warrants to Canaccord Genuity Corp., exercisable at $0.45 per share for three years.

The offering included 25,500 flow-through units issued to a company insider for $9,945, constituting a related party transaction under Multilateral Instrument 61-101. The company said it was exempt from formal valuation and minority shareholder approval requirements, as the insider participation did not exceed 25% of the company's market capitalization.

All securities issued carry a four-month-and-one-day hold period. The warrants include an acceleration provision allowing the company to shorten the expiry to 30 days if the share price exceeds $0.60 on the CSE for 10 consecutive trading days.

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