Forum Closes First Tranche of Private Placement

Rhea-AI Summary

Forum Energy Metals (TSXV: FMC) (OTCQB: FDCFF) has completed the first tranche of its non-brokered private placement, raising $832,000 through the issuance of 8,320,000 flow through units at $0.10 per unit. Each unit includes one flow through common share and half a warrant, with whole warrants exercisable at $0.15 per share until June 20, 2026.

The company paid $48,000 in finder's fees and issued 480,000 finder warrants. Company insiders participated for $32,000. All securities have a four-month hold period until April 21, 2025. The proceeds will fund Canadian Exploration Expenses on Forum's uranium properties and qualifying expenses for the critical mineral tax credit (CMETC).

Positive

• Secured $832,000 in new funding through flow-through units
• Insider participation demonstrates management confidence with $32,000 investment

Negative

• Share dilution through issuance of 8,320,000 new units
• Additional dilution potential from 4,160,000 warrants at $0.15

Vancouver, British Columbia--(Newsfile Corp. - December 24, 2024) - Forum Energy Metals Corp. (TSXV: FMC) (OTCQB: FDCFF) ("Forum" or the "Company") announces that, further to its news release of December 16, 2024, it has closed the first tranche of its non-brokered private placement and raised $832,000 through the issuance of 8,320,000 flow through units (the "FT Units") at a price of $0.10 per FT Unit.

Each FT Unit is comprised of one flow through common share and one-half of one share purchase warrant (a "Warrant"). Each whole Warrant is exercisable to purchase one non-flow through common share at a price of $0.15 per share until June 20, 2026.

Forum paid finders fees of $48,000 and issued 480,000 finder warrants at a price of $0.15 for a term of 18 months expiring June 20, 2026. All securities issued are subject to a four month hold period expiring April 21, 2025.

Proceeds raised from the issuance of FT Units will be used by Forum to incur Canadian Exploration Expenses on its Canadian uranium properties and will be used as deemed appropriate for qualifying expenses for the critical mineral tax credit (CMETC).

Insiders of the Company participated in the Offering for $32,000, and such FT Units issued to insiders are subject to a four month hold period pursuant to applicable policies of the TSX Venture Exchange. The issuance of FT Units to insiders is considered a "related party transaction" within the meaning of Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions ("MI 61-101"). The Company is relying on exemptions from the formal valuation requirements of MI 61-101 pursuant to section 5.5(a) and the minority shareholder approval requirements of MI 61-101 pursuant to section 5.7(1)(a) in respect of such insider participation as the fair market value of the transaction, insofar as it involves interested parties, does not exceed 25% of the Company's market capitalization.

About Forum Energy Metals

Forum Energy Metals Corp. (TSXV: FMC) (OTCQB: FDCFF) is focused on the discovery of high-grade unconformity-related uranium deposits in the Athabasca Basin, Saskatchewan and the Thelon Basin, Nunavut. For further information: https://www.forumenergymetals.com.

ON BEHALF OF THE BOARD OF DIRECTORS

Richard J. Mazur, P.Geo.
President & CEO

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 press release contains 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. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause Forum's actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking information. Such factors include but are not limited to: uncertainties related to the historical data, the work expenditure commitments; the ability to raise sufficient capital to fund future exploration or development programs; changes in economic conditions or financial markets; changes commodity prices, litigation, legislative, environmental and other judicial, regulatory, political and competitive developments; technological or operational difficulties or an inability to obtain permits required in connection with maintaining or advancing its exploration projects.

For further information contact:

Rick Mazur, P.Geo., President & CEO
mazur@forumenergymetals.com
Tel: 604-630-1585

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/235020

FAQ

How much did Forum Energy Metals (FDCFF) raise in its first tranche private placement?

Forum Energy Metals raised $832,000 through the issuance of 8,320,000 flow through units priced at $0.10 per unit.

What are the terms of Forum Energy Metals' (FDCFF) warrants from December 2024 placement?

Each whole warrant is exercisable at $0.15 per share until June 20, 2026, with a term of 18 months.

When does the hold period expire for Forum Energy Metals' (FDCFF) December 2024 private placement?

The securities issued have a four-month hold period expiring April 21, 2025.

How much insider participation was there in Forum Energy Metals' (FDCFF) December 2024 placement?

Insiders of the company participated in the offering for $32,000.

What will Forum Energy Metals (FDCFF) use the December 2024 private placement proceeds for?

The proceeds will be used for Canadian Exploration Expenses on Forum's uranium properties and qualifying expenses for the critical mineral tax credit (CMETC).