Xmet Announces Above Market Private Placement Financings for Gross Proceeds of $1,000,000
November 16 2011 - 11:07AM
Marketwired
Xmet Inc. (TSX VENTURE:XME) ('Xmet') is pleased to announce two
proposed non-brokered private placement offerings of common shares
in the capital of Xmet (each, a "Common Share"). The first
non-brokered private placement consists of an offering of up to
3,571,429 Common Shares issued on a flow through basis at $0.14 per
share for aggregate gross proceeds of up to $500,000 (the "Flow
Through Offering"). The second non-brokered private placement
consists of an offering of up to 3,846,154 Common Shares at a price
of $0.13 per share for aggregate gross proceeds of up to $500,000
(the "Non-Flow Through Offering" and, collectively with the Flow
Through Offering, the "Offerings"). The Corporation may, in its
discretion, increase the Flow Through Offering for aggregate gross
proceeds of up to $1,000,000.
At the closing of the Offerings, compensation will be paid to
agents and finders in cash equal to 6% of the gross proceeds
attributable to them under the Offerings and will receive
non-transferable compensation warrants exercisable at $0.13 per
compensation warrant (in the case of the Non-Flow Through Offering)
and/or $0.14 per compensation warrant (in the case of the Flow
Through Offering) exercisable for a period of one (1) year from the
date of closing of the Offerings to acquire such number of Common
Shares as is equal to 8% of the aggregate number of Common Shares
attributable to them.
The proceeds of the Flow-Through Offering will be used by Xmet
for additional drilling on its Duquesne-Ottoman Property and Xmet's
other projects. The proceeds of the Non-Flow Through Offering will
be used by Xmet for ongoing business development, operating capital
for projects, general and administrative expenses and for general
working capital purposes.
The Offerings are anticipated to close on or about November 30,
2011 and are subject to certain conditions including, but not
limited to, the receipt of all necessary approvals including the
approval of the TSX Venture Exchange. All securities issued
pursuant to the Offerings will be subject to a four month hold
period from the date of closing of the Offerings.
About Xmet Inc.
Xmet, through its wholly-owned subsidiary Duquesne-Ottoman Mines
Inc. ("Duquesne-Ottoman Mines"), carries out gold and resource
exploration and development. Pursuant to the terms of a mining
option agreement between Duquesne-Ottoman Mines and Duparquet
Assets Ltd., Duquesne-Ottoman Mines can earn an option to purchase
75% of the common shares in the capital of Duparquet Assets Ltd,
which legally and beneficially owns 20 claims (commonly referred to
as Duquesne West) and 40 claims (commonly referred to as Ottoman)
covering an area of 928.6 hectares located approximately 30
kilometres north of the city of Rouyn-Noranda and 10 kilometres
east of the village of Duparquet within the townships of Duparquet
and Destor in the Province of Quebec.
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.
Contacts: Xmet Inc. Charles Beaudry President and COO (416)
644-6588cbeaudry@xmet.ca Xmet Inc. Stephen Stewart V.P. Corporate
Development (416) 644-6588sstewart@xmet.ca
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