Neotech Metals closes $3.2 million private placement financing

Neotech Metals Corp. (CSE: NTMC) (OTCQB: NTMFF) (FSE: V690) completed a non-brokered private placement financing that raised gross proceeds of $3,240,445.

The company issued 9,258,414 critical minerals exploration tax credit flow-through units at $0.35 per unit. Each unit consists of one flow-through common share and one-half of a share purchase warrant. The warrants allow holders to purchase common shares at $0.45 for two years.

Neotech paid finder's fees of $57,304.96 and issued 163,728 non-transferable finder's warrants. The finder's warrants permit acquisition of shares at $0.45 for two years from issuance.

An insider of the company purchased 285,000 units for $99,750, constituting a related party transaction under regulatory requirements. The company was exempt from obtaining formal valuation and minority shareholder approval as the transaction value remained below 25% of market capitalization.

The net proceeds will fund qualified expenditures on the company's mineral properties and general working capital. The units have a four-month and one-day hold period from issuance.

The warrants include an acceleration provision that allows the company to shorten the expiry date to 30 days if share prices exceed $0.75 for 20 consecutive trading days following the financing close.

Neotech Metals operates as a mineral exploration company with projects focused on rare-earth elements and rare metals. The company holds three wholly-owned projects: Hecla-Kilmer in Ontario, located near hydroelectric power generation and railway infrastructure, and the TREO and Foothills projects in British Columbia.

The information is based on a company press release statement.

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