Emergent Closes First Tranche of Private Placement

Rhea-AI Summary

Emergent Metals Corp. has completed the first tranche of a non-brokered private placement, raising CDN$613,000 by issuing 3,065,000 units at CDN$0.20 each. Each unit includes one common share and one warrant, exercisable at CDN$0.26 until October 21, 2024. Funds will support exploration in Quebec and Nevada. A finder's fee of CDN$33,950 and 169,750 finder's warrants will be paid. The offering is pending final approval from the TSX Venture Exchange, with securities subject to a hold period of four months and one day.

Positive

• Raised CDN$613,000 in first tranche of private placement.
• Funds allocated for property exploration in Quebec and Nevada.

Negative

• Warrants exercisable at CDN$0.26 may lead to share dilution if exercised.

Not for Dissemination in the United States or for Distribution to United States News Wire Services

VANCOUVER, BC / ACCESSWIRE / October 21, 2022 / Emergent Metals Corp. ("Emergent" or the "Company") (TSX Venture Exchange:EMR) announces that it has completed a first tranche (the "First Tranche") of a non-brokered private placement (the "Offering") described in its news releases of July 26, 2022 and September 28, 2022. In connection with the closing of the First Tranche of the Offering, the Company issued an aggregate of 3,065,000 units (the "Units") at a price of CDN$0.20 per Unit for gross proceeds of CDN$613,000. Each Unit consists of one common share in the capital of the Company (a "Share") and one whole transferable common share purchase warrant (a "Warrant"). Each whole Warrant is exercisable to acquire one Share at an exercise price of CDN$0.26per Share until October 21, 2024, which is 24 months from the date of issuance.

Emergent intends to use the net proceeds of the Offering for exploration of Emergent's properties in Quebec and Nevada and general working capital.

The Company will pay aggregate finder's fees of CDN$33,950.00 and 169,750 Share purchase warrants (the "Finder's Warrants") in connection with subscriptions from subscribers introduced to the First Tranche of the Offering by Research Capital Corporation, Haywood Securities Inc. and Leede Jones Gable Inc. Each Finder's Warrant is exercisable to acquire one Share in the capital of the Company at an exercise price of CDN$0.26 per Share until October 21, 2024, which is 24 months from the date of issuance.

The Offering remains subject to final approval of the TSX Venture Exchange.

The securities issued under the First Tranche of the Offering, and any Shares that may be issuable on exercise of any such securities, will be subject to a statutory hold period expiring four months and one day from the date of issuance of such securities.

About Emergent

Emergent is a gold and base metal exploration company focused on Nevada and Quebec. The Company's strategy is to look for quality acquisitions, add value to these assets through exploration, and monetize them through sale, joint ventures, option, royalty, and other transactions to create value for our shareholders (acquisition and divestiture ("A&D") business model). In Nevada, Emergent's Golden Arrow Property, the core asset of the Company, is an advanced stage gold and silver property with a well-defined measured and indicated resource. New York Canyon is a base metal property subject to an Earn-in with Option to Joint Venture Agreement with Kennecott Exploration, a subsidiary of Rio Tinto Plc (RIO). The Mindora Property is a gold, silver, and base metal property located twelve miles from New York Canyon. Buckskin Rawhide East is a gold and silver property leased to Rawhide Mining LLC, operators of the adjacent Rawhide Mine.

In Quebec, the Casa South Property is an early-stage gold property adjacent to Hecla Mining Corporation's (HL) operating Casa Berardi Mine. The Tecesson Property is located about 50 km north of the Val d'Or mining camp. Emergent has a 1% NSR in the Troilus North Property, part of the Troilus Mine Property (pre-feasibility stage) being explored by Troilus Gold Corporation (TLG). In addition, the company has a 1% NSR in the East-West Property adjacent and on strike with Wesdome Gold Mine Ltd.'s (WDO) operating Kiena Mine and O3 Mining Corporation's (OIII) Marban Project (prefeasibility stage).

Note that the location of Emergent's properties adjacent to producing or past producing mines does not guarantee exploration success at Emergent's properties or that mineral resources or reserves will be delineated. For more information on the Company, investors should review the Company's website at www.emergentmetals.com or view the Company's filings available at www.sedar.com.

This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.

On behalf of the Board of Directors

David G. Watkinson, P.Eng.
President & CEO

For further information please contact:
David G. Watkinson, P.Eng.
Tel: 530-271-0679 Ext 101
Email: info@emergentmetals.com

Neither TSX Venture Exchange nor its Regulation Services Provider (as the term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Cautionary Note on Forward-Looking Statements

Certain information contained in this news release constitutes "forward-looking information" or "forward-looking statements" (collectively, "forward-looking information"). Without limiting the foregoing, such forward-looking information includes statements regarding the process and completion of the Offering, the use of proceeds of the Offering and any statements regarding the Company's business plans, expectations and objectives. In this news release, words such as "may", "would", "could", "will", "likely", "believe", "expect", "anticipate", "intend", "plan", "estimate" and similar words and the negative form thereof are used to identify forward-looking information. Forward­ looking information should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether, or the times at or by which, such future performance will be achieved. Forward-looking information is based on information available at the time and/or the Company management's good­ faith belief with respect to future events and is subject to known or unknown risks, uncertainties, assumptions and other unpredictable factors, many of which are beyond the Company's control. For additional information with respect to these and other factors and assumptions underlying the forward-looking information made in this news release, see the Company's most recent Management's Discussion and Analysis and financial statements and other documents filed by the Company with the Canadian securities commissions and the discussion of risk factors set out therein. Such documents are available at www.sedar.com under the Company's profile and on the Company's website at www.emergentmetals.com. The forward-looking information set forth herein reflects the Company's expectations as at the date of this news release and is subject to change after such date. The Company disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, other than as required by law.

SOURCE: Emergent Metals Corp.

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FAQ

What is the purpose of Emergent Metals Corp.'s recent private placement?

Emergent Metals Corp. intends to use the proceeds from the private placement for exploration of its properties in Quebec and Nevada, alongside general working capital.

How much did Emergent Metals Corp. raise in the recent placement?

Emergent Metals Corp. raised a total of CDN$613,000 through the first tranche of the private placement.

What are the details of the warrants issued by Emergent Metals Corp.?

Each unit issued includes one warrant exercisable at CDN$0.26 per share until October 21, 2024.

When does the statutory hold period for the issued securities expire?

The statutory hold period for the issued securities expires four months and one day from the date of issuance.

Is the private placement subject to any approvals?

Yes, the private placement remains subject to final approval by the TSX Venture Exchange.