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1844 Resources Inc. (TSXV: EFF) ("1844" or the "Company") is pleased to announce the successful initial closing of its previously announced non-brokered private placement, representing an important step in the Company's recapitalization strategy.
The Company has issued 13,696,000 units at $0.015 for total gross proceeds of $205,440. Each unit consists of one common share and one common share purchase warrant (each a "Warrant"), exercisable at $0.05 for a period of 24 months following the closing date.
"This first tranche strengthens our financial position and provides added flexibility to advance our exploration at our flagship Vortex Project in the Gaspé Peninsula, Québec," said Sylvain Laberge, President & CEO of 1844. "We appreciate the support of our early investors and remain focused on long-term value creation."
As part of the closing, the Company paid finder's fees totaling $2,362.50, representing 7% of the gross proceeds raised through certain finders. All securities issued are subject to a statutory hold period expiring May 21, 2026.
Certain insiders of the Company, (collectively, the "Insiders") subscribed to the Unit Offering for an aggregate of 1,470,000 Units. Such issuance of Units to the Insiders constitutes a "related party transaction", as such term is defined under Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions ("MI 61-101"). The Company is relying on an exemption from the formal valuation and minority shareholder approval requirements of MI 61-101 pursuant to section 5.5(a) and section 5.7(1)(a) of MI 61-101, on the basis that the participation in the Unit Offering by the Insiders does not exceed 25% of the fair market value of the Company's market capitalization. A material change report will be filed in connection with the participation of the Insiders in the Unit Offering.
About 1844 Resources Inc.
1844 is a Canadian exploration company focused on unlocking the value of strategic and energy-transition metals in the underexplored region of Gaspé, Québec. With a dedicated leadership team and a forward-looking approach, 1844 aims to deliver long-term shareholder value through discovery and disciplined growth.
For further information:
Sylvain Laberge, President & CEO
Tel: 514.702.9841
Email: slaberge@sdnlfinancial.com
FORWARD-LOOKING INFORMATION
Some of the statements contained in this press release are forward-looking statements and information within the meaning of applicable securities laws. Forward-looking statements and information can be identified by the use of words such as "expects", "intends", "is expected", "potential", "suggests" or variations of such words or phrases, or statements that certain actions, events or results "may", "could", "should", "would", "might" or "will" be taken, occur or be achieved. Forward-looking statements and information are not historical facts and are subject to a number of risks and uncertainties beyond the Company's control. Actual results and developments are likely to differ, and may differ materially, from those expressed or implied by the forward-looking statements contained in this news release. Accordingly, readers should not place undue reliance on forward-looking statements. The Company undertakes no obligation to update publicly or otherwise revise any forward-looking statements, except as may be required by law.
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