Decade Announces Non-Brokered Private Placement

Rhea-AI Summary

Decade Resources (TSXV: DEC) has announced a non-brokered private placement of flow-through shares to raise gross proceeds of up to $125,000. The offering consists of 2,500,000 flow-through units at $0.05 per unit. Each unit includes one common share and one transferable purchase warrant, exercisable at $0.08 per share for 24 months.

The offering benefits from the Mineral Exploration Tax Credit (METC), providing a 15% tax credit on mineral exploration expenses, and the new 30% Critical Mineral Exploration Tax Credit (CMETC) for specified minerals. The proceeds will be used for the company's projects in British Columbia's 'Golden Triangle' area.

Positive

• Secured additional funding of $125,000 through flow-through shares
• Investors benefit from both 15% METC and 30% CMETC tax credits
• Warrant inclusion provides potential additional future funding at $0.08 per share

Negative

• Small financing amount of only $125,000 indicates scope
• Share dilution through issuance of 2,500,000 new units
• Additional potential dilution from warrant exercise

Stewart, British Columbia--(Newsfile Corp. - December 17, 2024) - Decade Resources Ltd. (TSXV: DEC) ("Decade" or the Company) is pleased to announce a non-brokered private placement of flow-through shares to raise aggregate gross proceeds of up to $125,000.

The flow-through offering will comprise of 2,500,000 flow-through units, at a price of $0.05 per flow-through unit, for gross proceeds of $125,000. Each unit will comprise one common share and one transferable common share purchase warrant, each warrant being exercisable for the purchase of one additional common share, at a price of $0.08 per share, for a 24-month period. The federal proposal for the Mineral Exploration Tax Credit (METC) provides an additional income tax benefit for individuals who invest in mining flow-through shares, which augments the tax benefits associated with the deductions that are flowed through. The METC is equal to 15 per cent of specified mineral exploration expenses incurred in Canada and renounced to flowthrough share investors. The proposed 2022 Budget proposed to introduce a new 30-percent Critical Mineral Exploration Tax Credit (CMETC) for specified minerals. The specified minerals that would be eligible for the CMETC are: copper, nickel, lithium, cobalt, graphite, rare earth elements, scandium, titanium, gallium, vanadium, tellurium, magnesium, zinc, platinum group metals and uranium. These minerals are used in the production of batteries and permanent magnets, both of which are used in zero-emission vehicles or are necessary in the production and processing of advanced materials, clean technology, or semi-conductors.

Finders' fees may be payable in connection with the private placement.

The proceeds from the sale of the flow-through shares will be expended on the company's projects located in British Columbia.

Ed Kruchkowski, P. Geo., a qualified person under National Instrument 43-101 is responsible for the contents of this release. E. Kruchkowski is not independent of Decade as he is the president of the Company.

Decade Resources Ltd. is a Canadian based mineral exploration company actively seeking opportunities in the resource sector. Decade holds numerous properties at various stages of development and exploration from basic grass roots to advanced ones. Its properties and projects are all located in the "Golden Triangle" area of northern British Columbia. For a complete listing of the Company assets and developments, visit the Company website at www.decaderesources.ca which is presently being updated. For investor information please call 250-636-2264 or Gary Assaly at 604-377-7969.

ON BEHALF OF THE BOARD OF DECADE RESOURCES LTD.

"Ed Kruchkowski"
Ed Kruchkowski, President

"Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release."
"This news release may contain forward-looking statements. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements."

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/234213

FAQ

What are the terms of Decade Resources' (TSXV: DEC) December 2024 private placement?

The private placement consists of 2,500,000 flow-through units at $0.05 per unit, totaling $125,000. Each unit includes one common share and one warrant exercisable at $0.08 for 24 months.

How much tax credit do investors get from Decade Resources' flow-through shares?

Investors can benefit from both the 15% Mineral Exploration Tax Credit (METC) and the 30% Critical Mineral Exploration Tax Credit (CMETC) for specified minerals.

What is the exercise price and duration of the warrants in Decade Resources' December 2024 offering?

The warrants are exercisable at $0.08 per share for a 24-month period.

How will Decade Resources use the proceeds from the December 2024 private placement?

The proceeds from the flow-through shares will be used for the company's projects located in British Columbia's Golden Triangle area.