Stillwater Critical Minerals Closes $3.89 Million Placement with $2.1 Million Lead Order from Glencore
Stillwater Critical Minerals has successfully closed a non-brokered private placement, generating $3.89 million in gross proceeds. Glencore Canada led the placement with a $2.1 million investment. The Company aims to advance its flagship project and secure domestic mineral supplies in the US. The Offering included 27,798,000 Units at $0.14 per Unit, with each Unit comprising a Common Share and a Warrant. Glencore now holds a 15.41% ownership stake, potentially increasing to 22.72% upon exercise of its Warrants. Proceeds will fund exploration, development, and operational expenses. Stillwater has also granted Glencore certain investor rights and imposed restrictions on shareholdings to prevent exceeding 19.9% ownership.
Successful closure of a non-brokered private placement, raising $3.89 million in gross proceeds.
Lead investment of $2.1 million from Glencore Canada
Strong investor demand resulted in over 55% oversubscription of the Offering.
Potential to secure domestic mineral supplies in the US, aligning with government mandates.
Funds to be allocated for exploration, development, and operational purposes.
Related party transactions from directors and officers subscribing for units in the Offering.
Restrictions on shareholdings to prevent Glencore from exceeding 19.9% ownership.
Warrants subject to early acceleration if certain trading price conditions are met.
Securities not registered under U.S. Securities Act, limiting sale to U.S. persons.
VANCOUVER, BC / ACCESSWIRE / May 1, 2024 / Stillwater Critical Minerals (TSX.V:PGE)(OTCQB:PGEZF)(FSE:J0G) (the "Company" or "Stillwater") is pleased to announce that, following an oversubscription of more than
Stillwater President and CEO, Michael Rowley, stated, "We are very pleased with the strong interest from both new and existing shareholders who continue to recognize the strong potential of our flagship Stillwater West project in Montana. Our vision of rapidly advancing a large-scale primary source of low-carbon nickel, cobalt, platinum group elements, copper and other critical minerals in a famously productive American mining district is strongly aligned with the US government's stated mandate to secure domestic supplies of nine of the minerals we host at Stillwater West. We look forward to providing further updates on a number of initiatives that are currently underway, including drill results from our resource expansion campaign, in the near term."
Each Unit is comprised of one common share of the Company (each, a "Common Share") and one half of one Common Share purchase warrant, with each full warrant (each, a "Warrant") entitling the holder to purchase one Common Share at an exercise price of
Proceeds from the Offering are intended to be used for exploration and development activities at the Company's North American nickel projects, as well as for working capital and general and administrative expenses.
In connection with the Offering, the Company and Glencore have amended the investor rights agreement dated June 30, 2023 to provide for an additional right of Glencore, subject to certain conditions, to appoint a board member for so long as it maintains a
Certain directors and officers of the Company subscribed for 2,017,142 units of the Offering for gross proceeds of
All securities issued pursuant to the Placement will be subject to a four-month hold period from the date of issuance in accordance with applicable securities laws and the policies of the TSX-V. The securities have not been, and will not be, registered under the U.S. Securities Act or any U.S. state securities laws, and may not be offered or sold in the United States or to, or for the account or benefit of, U.S. persons, absent registration or any applicable exemption from the registration requirements of the U.S. Securities Act and applicable U.S. state securities laws. The private placement remains subject to the final approval of the TSX-V.
In connection with the private placement, Stillwater has paid commissions to eligible parties totaling
About Stillwater Critical Minerals Corp.
Stillwater Critical Minerals (TSX.V: PGE | OTCQB: PGEZF) is a mineral exploration company focused on its flagship Stillwater West Ni-PGE-Cu-Co + Au project in the iconic and famously productive Stillwater mining district in Montana, USA. With the addition of two renowned Bushveld and Platreef geologists to the team and strategic investments by Glencore, the Company is well positioned to advance the next phase of large-scale critical mineral supply from this world-class American district, building on past production of nickel, copper, and chromium, and the on-going production of platinum group, nickel, and other metals by neighboring Sibanye-Stillwater. An expanded NI 43-101 mineral resource estimate, released January 2023, positions Stillwater West with the largest nickel resource in an active US mining district as part of a compelling suite of nine minerals now listed as critical in the USA. To date, five Platreef-style nickel and copper sulphide deposits host a total of 1.6 billion pounds of nickel, copper and cobalt, and 3.8 million ounces of palladium, platinum, rhodium, and gold at Stillwater West, and all deposits remain open for expansion along trend and at depth. Results are pending from resource expansion drilling completed in the fall of 2023.
Stillwater also holds the high-grade Black Lake-Drayton Gold project adjacent to Treasury Metals' development-stage Goliath Gold Complex in northwest Ontario, currently under an earn-in agreement with Heritage Mining, and the Kluane PGE-Ni-Cu-Co critical minerals project on trend with Nickel Creek Platinum‘s Wellgreen deposit in Canada‘s Yukon Territory.
FOR FURTHER INFORMATION, PLEASE CONTACT:
Michael Rowley, President, CEO & Director
Email: info@criticalminerals.com Phone: (604) 357 4790
Web: http://criticalminerals.com Toll Free: (888) 432 0075
Forward-Looking Statements
This news release includes certain statements that may be deemed "forward-looking statements" or "forward-looking information" in accordance with applicable securities laws. All statements in this release, other than statements of historical facts including, without limitation, statements regarding the expected use of proceeds and receipt of final TSX-V approval under the Offering, are forward-looking statements that involve various risks and uncertainties. Although Stillwater believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Forward-looking statements are based on a number of material factors and assumptions. Factors that could cause actual results to differ materially from those in forward-looking statements include failure or delays to obtain final TSX-V approval, unsuccessful exploration results, changes in project parameters as plans continue to be refined, results of future resource estimates, future metal prices, availability of capital and financing on acceptable terms, general economic, market or business conditions, risks associated with regulatory changes, defects in title, availability of personnel, materials and equipment on a timely basis, accidents or equipment breakdowns, uninsured risks, delays in receiving government approvals, unanticipated environmental impacts on operations and costs to remedy same, and other exploration or other risks detailed herein and from time to time in the filings made by the Company with securities regulators. Accordingly, readers are cautioned that actual events may differ materially from those projected in the forward-looking statements. For more information on Stillwater and the risks and challenges of its businesses, investors should review their annual filings that are available at www.sedarplus.ca.
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.
SOURCE: Stillwater Critical Minerals
View the original press release on accesswire.com
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