VANCOUVER, BC, July 10,
2024 /CNW/ - First Nordic Metals
Corp. (the "Company" or "First Nordic")
(TSXV: FNM) (OTCQB: FNMCF) (FRA: HEG0) is pleased to announce the
successful completion of the Company's warrant exercise incentive
program, as previously announced on June 13,
2024 (the "Incentive Program"), as well as the exercise of
additional Company warrants and stock options, providing aggregate
gross proceeds of $2,703,157 to First
Nordic Metals Corp.
Taj Singh, President and CEO
comments: "The exercise of these warrants and options
is a significant positive event as it strengthens our cash position
and cleans up our capitalization structure. In the last three
weeks, approximately 7 million warrants were exercised by our
supportive shareholder base, allowing the Company to accelerate the
advancement of its projects. We believe First Nordic's project
portfolio is unique, with its combination of grade, scale,
substantial growth potential, and great location in Europe's heartland of mining."
Incentive Program
A total of 6,301,273 common shares
in the capital of the Company (each a "Common Share") were
issued upon the exercise of 6,301,273 outstanding share purchase
warrants (the "Outstanding Warrants") permitted to
participate under the Incentive Program, providing gross proceeds
of $1,827,369 to the Company from the
Incentive Program.
For every Outstanding Warrant exercised, the holders of such
Outstanding Warrant received the one Common Share to which they
were otherwise entitled under the terms of the Outstanding Warrants
and one-half of one common share purchase warrant (each whole
warrant, an "Incentive Warrant"). Each Incentive Warrant
allows the holder to acquire one Common Share at an exercise price
of $0.40 for a period of two years
following the date of the issuance of the Incentive Warrant. A
total of 3,150,631 Incentive Warrants were issued pursuant to the
Incentive Program.
Holders of 7,689,579 Outstanding Warrants were eligible to
participate in the Incentive Program. For those holders of
Outstanding Warrants who chose not to participate in the Incentive
Program, such Outstanding Warrants will remain outstanding and
continue to be exercisable for Common Shares on their current terms
(including the amended exercise price of $0.29 per Outstanding Warrant) until their
applicable expiry date, at which time any Outstanding Warrants that
remain unexercised will expire and be cancelled pursuant to their
terms.
Insiders of the Company participated in the Incentive Program
exercising 507,513 Outstanding Warrants and were issued 253,756
Incentive Warrants. As a result, the Incentive Program may
constitute a "related party transaction" with-in the meaning of
Multilateral Instrument 61-101 - Protection of Minority
Shareholders in Special Transactions ("MI 61-101"). The
Company relies on the exemptions from the formal valuation
requirements of MI 61-101 contained in section 5.5(a) and (b) of MI
61-101 on the basis that the fair market value of the transaction
with insiders will not be more than 25% of the market
capitalization of the Company and no securities of the Company are
listed on a specified market set out in such section, and the
Company further relies on the exemption from the minority
shareholder approval requirements of MI 61-101 contained in Section
5.7(1)(a) of MI 61-101 on the basis of the fair market value of the
transaction with insiders will not be more than 25% of the market
capitalization of the Company.
The proceeds of the Incentive Program will be used for
exploration and development of the Company's projects and for
working capital purposes.
The Incentive Warrants issued pursuant to the Incentive Program,
and the Common Shares issuable on exercise thereof, are subject to
a hold period ending November 9,
2024. The Incentive Program is subject to the final
acceptance of the TSX Venture Exchange.
Additional Warrants and Stock Options
Since
mid-May 2024, in addition to funding
from the Incentive Program, First Nordic has raised $698,500 from stock option exercises and an
additional $177,288 from the exercise
of other warrants not included in the Incentive Program.
Marketing Services
First Nordic also announces it has
amended its previously announced agreement (May 5, 2024) with RMK Marketing Inc. ("RMK") to
increase its advertising budget by up to an additional $250,000. The term of the agreement remains the
same, six months commencing May 5,
2024. The Company will not issue any securities to RMK as
compensation for the services. As of the date hereof, to the
Company's knowledge, RMK (including its directors and officers)
does not own any securities of the Company and has an arm's-length
relationship with the Company. RMK is an independent company which
will, as appropriate, provide project management and consulting for
an on-line marketing campaign, coordinate marketing actions,
maintain and optimize adwords campaigns, adapt adwords bidding
strategies, optimize adwords ads, and create and optimize landing
pages. The promotional activity will occur by e-mail, Facebook and
Google.
ABOUT FIRST NORDIC METALS
First Nordic's flagship is
the Barsele gold project, located in Sweden and in a joint venture with senior gold
producer Agnico Eagle Mines Ltd. The Barsele project currently
hosts a combined open pit and underground NI 43-101 Indicated
Resource of 324,000 ounces gold and an Inferred resource of
2,086,000 ounces gold (2020, Technical Report and Mineral Resource
Estimate for the Barsele Property, InnovExplo). Immediately
surrounding the Barsele project, First Nordic is the 100%-owner of
a district-scale license position of close to 100,000 hectares on
both the prolific Gold Line and Skellefte VMS belts. Additionally,
in northern Finland First Nordic holds the entire underexplored
Oijärvi Greenstone Belt.
ON BEHALF OF THE BOARD OF DIRECTORS
Taj Singh, M.Eng, P.Eng, CPA
President & CEO, Director
Follow First Nordic Metals:
Twitter: @fnmetals
Youtube: @firstnordicmetalscorp
LinkedIn: @firstnordicmetals
Facebook: @FirstNordicMetals
Instagram: @firstnordicmetals
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of
this release.
Cautionary Note Regarding Forward-Looking
Statements:
This release contains
"forward‐looking information" or "forward-looking
statements" within the meaning of Canadian securities laws, which
may include, but are not limited to statements relating to receipt
of TSXV acceptance of the Incentive Program and use of proceeds
from the Incentive Program. All statements in
this release, other than statements of historical
facts, that address events or developments that the Company expects
to occur, are forward-looking statements. Forward-looking
statements are statements that are not historical facts and are
generally, but not always, identified by the words "expects",
"plans", "anticipates", "believes", "intends", "estimates",
"projects", "potential" and similar expressions, or that events or
conditions "will", "would", "may", "could" or "should" occur.
Although the Company believes the expectations expressed in such
forward-looking statements are based on reasonable assumptions,
such statements are not guarantees of future performance and actual
results may differ from those in the forward-looking statements.
Such forward-looking information reflects the Company's views with
respect to future events and is subject to risks, uncertainties and
assumptions. Such factors include, among other things: risks and
uncertainties relating to exploration and development, the ability
of the Company to obtain additional financing, the need to comply
with environmental and governmental regulations, fluctuations in
the prices of gold and other commodities, operating hazards and
risks inherent in the resource industry, competition and other
risks and uncertainties, including those described in the Company's
financial statements and/or management discussion and analysis
available on www.sedarplus.ca The Company does not undertake to
update forward‐looking statements or forward-looking
information, except as required by law.
SOURCE First Nordic Metals Corp.