BeMetals Announces $7M Private Placement Led by B2Gold
Vancouver, British Columbia – BeMetals Corp. (TSXV: BMET, OTCQB: BMTLF, Frankfurt: 1OI.F) (the “Company” or “BeMetals”) has announced it intends to complete a non-brokered private placement offering of up to 70,000,000 units (the “Units”) at a price of $0.10 per Unit (the “Offering”) for aggregate gross proceeds of up to $7,000,000.
Each Unit will consist of one common share in the capital of the Company (a “Share”) and one-half Share purchase warrant. Each whole Share purchase warrant (a “Warrant”) will entitle the holder thereof to purchase one additional Share at an exercise price of $0.18 per Share for one year from the date of issuance.
It is expected that B2Gold, a related party of the Company, will be subscribing for $1.4 million of the Offering to maintain their approximate 19% shareholding of BeMetals. Directors and Officers of the Company will also be purchasing Units in the Offering.
John Wilton, President and CEO of BeMetals, stated “We are very pleased to have B2Gold join our financing as a lead order, following the recent compelling drill results from the Pangeni Copper Project in Zambia, where multiple drill intersections have encountered extensive copper mineralization of similar style to major mines and projects in the Domes Region of the Zambian Copperbelt.
Importantly, the copper mineralization bears many comparable hallmarks in terms of width, grade, and geology to large-scale operating mines in the Domes Region.
This financing is another strong endorsement for our continued copper exploration work at the Pangeni Project. The majority of these funds will be deployed for the Company’s second phase of drilling this year which is anticipated to commence in August, and will be the largest program on the Pangeni Property to date.
Based on our most recent drilling results, we will focus on extending the discovered copper mineralization at the D-Prospect to the southwest, and northeast, with additional exploration drilling at other priority targets in close proximity to the D-Prospect area.”
In addition to funding the exploration and advancement of the Company’s Pangeni Project, net proceeds of this Offering will be used for general corporate purposes.
The Offering is subject to approval of the TSX Venture Exchange and all securities to be issued pursuant to the Offering will be subject to a four-month hold period under applicable Canadian securities laws. In connection with the Offering, the Company may pay finders’ fees on certain subscriptions.
The securities to be offered pursuant to the Offering have not been, and will not be, registered under the U.S. Securities Act of 1933, as amended (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, United States persons absent registration or any applicable exemption from the registration requirements of the U.S.
Securities Act and applicable U.S. state securities laws. This news release shall not constitute an offer to sell or the solicitation of an offer to buy securities in the United States, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.
In addition, our Zambian partner and optionor of the Pangeni Project have received formal documentation from the Zambian Ministry of Mines and Minerals Development for a two-year extension of the exploration license, with a letter of support to extend further by initiating feasibility-type work.
