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Stillwater Critical Minerals Closes $3.89 Million Placement with $2.1 Million Lead Order from Glencore

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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.

Stillwater Critical Minerals ha chiuso con successo un collocamento privato senza intermediari, raccogliendo 3,89 milioni di dollari in proventi lordi. Glencore Canada ha guidato il collocamento con un investimento di 2,1 milioni di dollari. L'azienda mira a sviluppare il suo progetto principale e a garantire l'approvvigionamento di minerali domestici negli USA. L'offerta includeva 27.798.000 unità a 0,14 dollari per unità, con ogni unità composta da un'azione ordinaria e un warrant. Glencore ora detiene una quota di proprietà del 15,41%, che potrebbe aumentare al 22,72% con l'esercizio dei suoi warrant. I proventi saranno utilizzati per finanziare esplorazione, sviluppo e spese operative. Stillwater ha anche concesso a Glencore alcuni diritti di investitore e imposto restrizioni sulle partecipazioni azionarie per evitare di superare il 19,9% di proprietà.
Stillwater Critical Minerals ha concluido exitosamente una colocación privada no intermediada, generando 3,89 millones de dólares en ingresos brutos. Glencore Canada lideró la colocación con una inversión de 2,1 millones de dólares. La compañía busca avanzar en su proyecto principal y asegurar el suministro de minerales domésticos en EE. UU. La oferta incluyó 27,798,000 Unidades a 0,14 dólares por Unidad, cada una consistiendo en una Acción Común y un Warrant. Glencore ahora posee un 15,41% de participación, que podría aumentar al 22,72% al ejercer sus Warrants. Los fondos recaudados se destinarán a la exploración, desarrollo y gastos operativos. Además, Stillwater ha otorgado a Glencore ciertos derechos de inversor e impuesto restricciones en la tenencia de acciones para evitar superar el 19,9% de propiedad.
Stillwater Critical Minerals는 비중개사 사적 배치를 성공적으로 마감하여 총 3.89백만 달러의 수익을 생성했습니다. Glencore Canada가 2.1백만 달러 투자로 배치를 주도했습니다. 회사는 주요 프로젝트를 발전시키고 미국 내 광물 공급을 확보하는 것을 목표로 합니다. 공모는 단위당 0.14달러에 27,798,000개의 유닛으로 구성되었으며, 각 유닛은 보통주와 워런트로 이루어져 있습니다. Glencore는 현재 15.41%의 소유 지분을 보유하고 있으며, 워런트를 행사하면 22.72%까지 증가할 수 있습니다. 수익금은 탐사, 개발 및 운영 비용에 사용될 것입니다. 또한 Stillwater는 Glencore에 투자자 권리를 부여하고 주식 소유 비율이 19.9%를 초과하지 않도록 제한을 두었습니다.
Stillwater Critical Minerals a réussi à clôturer un placement privé non intermédié, générant 3,89 millions de dollars de recettes brutes. Glencore Canada a mené le placement avec un investissement de 2,1 millions de dollars. L'entreprise vise à faire avancer son projet phare et à sécuriser les approvisionnements en minéraux domestiques aux États-Unis. L'offre comprenait 27 798 000 Unités à 0,14 dollar par Unité, chaque Unité comprenant une Action Ordinaire et un Warrant. Glencore détient désormais une participation de 15,41 %, qui pourrait augmenter à 22,72 % à l'exercice de ses Warrants. Les fonds seront utilisés pour financer l'exploration, le développement et les frais d'exploitation. Stillwater a également accordé à Glencore certains droits d'investisseur et imposé des restrictions sur les participations en actions pour éviter de dépasser 19,9 % de propriété.
Stillwater Critical Minerals hat erfolgreich eine nicht vermittelte Privatplatzierung abgeschlossen und dabei 3,89 Millionen Dollar Bruttoerlöse erzielt. Glencore Canada führte die Platzierung mit einer Investition von 2,1 Millionen Dollar an. Das Unternehmen beabsichtigt, sein Flaggschiffprojekt voranzutreiben und die Versorgung mit inländischen Mineralien in den USA zu sichern. Das Angebot umfasste 27.798.000 Einheiten zu je 0,14 Dollar, wobei jede Einheit aus einer Stammaktie und einem Warrant besteht. Glencore hält nun einen Anteil von 15,41%, der sich durch die Ausübung seiner Warrants auf bis zu 22,72% erhöhen könnte. Die Erlöse werden zur Finanzierung von Exploration, Entwicklung und Betriebskosten verwendet. Stillwater hat Glencore zudem bestimmte Investorenrechte eingeräumt und Einschränkungen bei den Aktienanteilen vorgenommen, um eine Überschreitung von 19,9% Eigentum zu verhindern.
Positive
  • 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.

Negative
  • 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 55% due to strong investor demand, it has closed the non-brokered private placement of units of the Company (the "Units") announced March 28, resulting in gross proceeds of $3,891,720 via the issuance of 27,798,000 Units at a price of $0.14 per Unit (the "Offering"). Glencore Canada Corporation ("Glencore"), a wholly owned subsidiary of Glencore plc, subscribed for 15,000,000 Units under the Offering.

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 $0.21, which would provide over $2.9 million in additional funding, if exercised in full. The Warrants shall be exercisable for three years from the date of issue, subject to early acceleration if the volume weighted average trading price of Stillwater's Common Shares on the TSX Venture Exchange (the "TSX-V") is greater than $0.315 for a period of 20 consecutive trading days. Upon closing of the Offering, Glencore increased its ownership and control of the outstanding Common Shares, on a non-diluted basis, to 15.41% and, assuming the exercise of its Warrants, 22.72% of the outstanding Common Shares on a partially diluted basis.

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 15% interest in the Company, and an additional board member if the Company increases its board size to nine or more directors, subject to a maximum board size of 12 directors. In addition, the Warrants issued to Glencore (together with the warrants of the Company currently held by Glencore, as amended pursuant to the Offering) provide for an "exercise cap" whereby any exercise of such warrants, when taken together with all Common Shares held by Glencore, that would result in Glencore's shareholdings in the Company exceeding 19.9% of the total outstanding Common Shares from time to time, will be subject to prior written approval by the Company and, if applicable, its shareholders and the TSX-V.

Certain directors and officers of the Company subscribed for 2,017,142 units of the Offering for gross proceeds of $282,399.88. Participation of the officers and directors in the Offering 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 transactions are exempt from the formal valuation and minority approval requirements in MI 61-101 as neither the fair market value of the securities to be issued, nor the fair market value of the consideration for the securities to be issued, insofar as it involves such insiders, exceeds 25% of the Company's market capitalization.

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 $64,582.56 and issued 461,304 finder's warrants, on the same terms as Warrants.

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

FAQ

What was the gross proceeds generated from Stillwater Critical Minerals' private placement?

The private placement raised $3.89 million in gross proceeds.

Who led the private placement and how much did they invest?

Glencore Canada led the placement with a $2.1 million investment.

What is the exercise price of the Warrants issued in the Offering?

Each Warrant entitles the holder to purchase one Common Share at an exercise price of $0.21.

What are the intended uses of the proceeds from the Offering?

The funds will be utilized for exploration, development activities, and operational expenses.

Are the securities issued subject to any restrictions?

All securities issued are subject to a four-month hold period and are not registered under the U.S. Securities Act, limiting sale to U.S. persons.

How much did the directors and officers of Stillwater subscribe for in the Offering?

The directors and officers subscribed for 2,017,142 units, generating gross proceeds of $282,399.88.

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