Plateau Energy Metals Inc. (“Plateau” or the “Company”) (TSXV:PLU) (OTCQB:PLUUF) (FRANKFURT:QG1) announced today that it has completed its previously announced non-brokered private placement of units (“Units”) raising gross proceeds of approximately $2,502,000 (the “Financing”).
Plateau Energy Metals Inc. (“Plateau” or the “Company”) (TSXV:PLU) (OTCQB:PLUUF) (FRANKFURT:QG1) announced today that it has completed its previously announced non-brokered private placement of units (“Units”) raising gross proceeds of approximately $2,502,000 (the “Financing”). The Company issued and sold 4,169.997 Units at a price of C$0.60 per Unit with each Unit consisting of one common share of the Company and one-half of one common share purchase warrant (each whole warrant, a “Warrant”). Each Warrant entitles the holder to acquire one additional common share of the Company at a price of C$0.90 Until May 25, 2021. The Company has the right to accelerate the expiry of the Warrants on 30 days’ written notice if, following 4 months and one day from the issuance of the Warrants, the volume weighted average price of the common shares of the Company on the TSX Venture Exchange for any period of twenty (20) consecutive trading days exceeds C$1.20 per common share. All securities issued in the Financing are subject to a 4-month hold period in Canada and such longer periods as may be required under other applicable securities laws.
The Company issued an additional 125,100 common shares and 62,550 non-transferable warrants (having the same terms as the Warrants) to qualified finders in connection with the Financing. Net proceeds from the Financing will be used to fund further drilling, property payments and the preparation of technical reports on the Company’s properties on the Macusani Plateau in southeastern Peru as well as for working capital and other general corporate purposes.
Insiders of the Company acquired ownership of, or control or direction over, 756,666 Units, or approximately 18.1% of the number sold in the Financing. As a result of the participation in the Financing by insiders, the Financing was considered to be a “related party transaction” as defined under Multilateral Instrument 61-101 (“MI 61-101”) and TSX Venture Exchange policy 5.9 (“Policy 5.9”). The transaction was however exempt from the formal valuation and minority shareholder approval requirements of MI 61-101 and Policy 5.9, as neither the fair market value of the securities issued to insiders nor the cash consideration paid for such securities exceeded 25% of the Company’s market capitalization at the relevant time. The participation of insiders in the Financing and the extent of such participation was not finalized until shortly prior to the completion of the Financing. Accordingly, it was not possible to publicly disclose details of the nature and extent of related party participation in the Financing at least 21 days prior to the completion date.
The securities referred to in this press release 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 in the United States absent registration or an applicable exemption from such registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy the securities in the United States or in any jurisdiction in which such offer, sale or solicitation would be unlawful.
About Plateau Energy Metals
Plateau Energy Metals Inc. is a Canadian lithium and uranium exploration and development company focused on its properties on the Macusani Plateau in southeastern Peru. The Company controls all reported uranium resources known in Peru, significant and growing lithium resources and mineral concessions covering over 91,000 hectares (910 km2) situated near significant infrastructure. Plateau Energy Metals is listed on the TSX Venture Exchange under the symbol ‘PLU’, quoted on the OTCQB under the symbol “PLUUF” and the Frankfurt Exchange under the symbol ‘QG1’. The Company has 69,496,054 shares issued and outstanding.
Neither 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.