Newpath Resources closes second and final tranche of private placement financing and stakes new mining claims in Northern Ontario

Newpath Resources Inc. – a Canadian exploration company – has announced that it has completed the closing of its second and final tranche (the “Second Tranche”) of its previously announced non-brokered private placement by issuing 1,928,571 units (the “Units”) at a price of $0.07 per Unit. The total gross proceeds raised from the Second Tranche is $135,000 and a total net proceeds of $105,000, as $30,000 was part of a repayment to a consultant of the Company. The total gross proceeds raised from both the first and Second Tranche of the previously announced private placement is $611,850.

Each Unit is comprised of one common share and one common share purchase warrant. Each warrant issued in the Second Tranche entitles the holder to acquire one common share of the Company for a period of five years from the closing of the Second Tranche at an exercise price of $0.09 per share.

All securities issued pursuant to the Second Tranche of the private placement will be subject to a four-month hold period expiring on May 14, 2023, under applicable securities laws in Canada.

The net proceeds raised from the private placement are expected to be used for general working capital.

An insider of the Company subscribed for an aggregate total of 428,571 Units under the private placement. As such, this participation constitutes a “related party transaction” as defined under Multilateral Instrument 61-101 Protection of Minority Security Holders in Special Transactions (“MI 61-101”). Such participation is exempt from the formal valuation and minority shareholder approval requirements of MI 61-101 contained in sections 5.5(b) and 5.7(1)(b) of MI 61-101, as the Company’s securities are not listed on a specified market and the fair market value of the Units being issued to insiders in connection with the Private Placement does not exceed $2,500,000, as determined in accordance with MI 61-101.

The Company did not file a material change report with respect to the participation of the insiders at least 21 days prior to the closing of the Private Placement as the insider participation was not determined at that time.

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