EnviroMetal Announces Non-Brokered Private Placement

Rhea-AI Summary

EnviroMetal Technologies Inc. has announced a non-brokered private placement of up to 10 million units at $0.25 per unit, aiming for gross proceeds of $2.5 million. Each unit comprises a common share and a warrant exercisable at $0.50 for 24 months. Proceeds will support the acquisition of feedstock for the company's processing facility, upgrades to mine pilot plants, and general working capital. Closing is expected around February 4, 2022, pending regulatory approvals. The company may increase the offering size subject to regulatory approval.

Positive

• Private placement targets gross proceeds of $2.5 million.
• Funds will support critical operational areas: feedstock acquisition and facility upgrades.
• Warrant exercise price potentially allows for raising further capital.

Negative

• The need for a private placement may indicate liquidity challenges.
• The issuance of warrants could lead to shareholder dilution if exercised.

Not for Distribution to United States Newswire Services or for Dissemination in the United States

VANCOUVER, BC / ACCESSWIRE / January 24, 2022 / EnviroMetal Technologies Inc. ("EnviroMetal" or the "Company"), (CSE:ETI)(OTCQX:EVLLF)(FSE:7N2) a technology company specializing in precious metal extraction processes with applications in the primary and secondary metals industries, announces a non-brokered private placement (the "Private Placement") of up to 10,000,000 units at a price of $0.25 per unit for gross proceeds of up to $2,500,000. Each unit will consist of one common share and one common share purchase warrant. Each warrant will entitle the holder to purchase one additional common share of the Company at a price of $0.50 per share for a period of twenty-four months from the date of closing. If the closing price of the common shares traded on the Canadian Securities Exchange exceeds $1.50 for 15 consecutive trading days, the Company may accelerate the expiration date of the warrant, provided that the Company gives notice of the acceleration by way of news release on or within 10 trading days of the accelerator event, and provided that the early expiration date is not less than 30 calendar days after the date of such news release.

The proceeds of the Private Placement will be utilized for the acquisition of feedstock for EnviroMetal's printed circuit board assembly processing facility, mine pilot plant upgrades and general working capital. The securities issued under the placement will be subject to a four-month hold period. The Private Placement is expected to close on or about February 4, 2022, and is subject to certain closing conditions including, but not limited to, the receipt of all necessary approvals by the applicable securities regulatory authorities including the Canadian Securities Exchange. Subject to regulatory approval, the Company may increase the size of the Private Placement.

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 unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.

About EnviroMetal Technologies Inc.

EnviroMetal Technologies is engaged in the development and commercialization of environmentally friendly formulas and technologies for the treatment of materials in the primary and secondary metals industries. Using its proprietary non-cyanide, water-based, neutral pH treatment process EnviroMetal extracts precious and non-precious metals from ores, concentrates, and electronic waste ("E-Waste").

Backed by the momentum of a first-class staff of scientists and engineers, a myriad of individual tests and assays, independent validations, and tens of thousands of hours in research and development, EnviroMetal's technology is emerging as a potential new eco-friendly standard for the hydrometallurgical extraction of precious metals in both the mining and E-Waste industries. For more information please visit: https://EnviroMetal.com.

Forward-Looking Statements

This News Release contains "forward-looking information" and "forward-looking statements" within the meaning of applicable Canadian and the United States securities legislation. Statements contained herein that are not based on historical or current fact, including without limitation statements containing the words "anticipates," "believes," "may," "continues," "estimates," "expects," and "will" and words of similar import, constitute "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking information may include, but is not limited to, information concerning our Research and Development activities, the accuracy of our capital and operating cost estimates; production and processing estimates; the results, the adequacy of EnviroMetal's financial resources, and timing of development of ongoing research and development projects, costs and timing of future revenues or profits and adequacy of financial resources. Wherever possible, words such as "plans", "expects", "projects", "assumes", "budget", "strategy", "scheduled", "estimates", "forecasts", "anticipates", "believes", "intends", "targets" and similar expressions or statements that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved, or the negative forms of any of these terms and similar expressions, have been used to identify forward-looking statements and information. Statements concerning future revenue or earnings estimates may also be deemed to constitute forward-looking information. Any statements that express or involve discussions concerning predictions, expectations, beliefs, plans, projections, objectives, assumptions, or future events or performance are not statements of historical fact and may be forward-looking information. Forward-looking information is subject to a variety of known and unknown risks, uncertainties, and other factors that could cause actual events or results to differ from those expressed or implied by the forward-looking information. Forward-looking information is based on the expectations and opinions of EnviroMetal's management on the date the statements are made. The assumptions used in the preparation of such statements, although considered reasonable at the time of preparation, may prove to be imprecise. We do not assume any obligation to update forward-looking information, whether as a result of new information, future events, or otherwise, other than as required by applicable law. For the reasons set forth above, prospective investors should not place undue reliance on forward-looking information. The CSE has not approved or disapproved of the information contained herein.

Contact Information:

Jason Leikam
VP Corporate Development
EnviroMetal Technologies Inc.
info@EnviroMetal.com
(604) 428-2400 x. 104

SOURCE: EnviroMetal Technologies Inc.

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FAQ

What is the details on EnviroMetal's private placement EVLLF?

EnviroMetal is conducting a non-brokered private placement of up to 10 million units at $0.25 each, targeting $2.5 million in gross proceeds.

When is the expected closing date for the private placement by EnviroMetal EVLLF?

The private placement is expected to close on or about February 4, 2022, pending necessary regulatory approvals.

How will EnviroMetal utilize the funds raised from the private placement EVLLF?

The funds will be used for acquiring feedstock for the processing facility, upgrading mine pilot plants, and for general working capital.

What are the implications of the warrants issued in EnviroMetal's EVLLF placement?

Each warrant allows for the purchase of additional shares at $0.50 for 24 months, which could dilute existing shares if exercised.