Xmet Announces Closing of Hard Dollar Financing of $400,040 to Institutional Funds
February 19 2014 - 2:57PM
Marketwired
Xmet Announces Closing of Hard Dollar Financing of $400,040 to
Institutional Funds
TORONTO, ONTARIO--(Marketwired - Feb 19, 2014) - Xmet Inc.
(TSX-VENTURE:XME) ("Xmet") is pleased to announce that, subject to
acceptance of the TSX Venture Exchange, it has completed a
non-brokered private placement of $400,040 in hard dollars. Xmet
will issue units to the investors, with each unit consisting of one
common share and one common share purchase warrant for 11 cents per
unit. Each warrant entitles the holder thereof to acquire one
common share of Xmet at a price of $0.175 at any time until August
19, 2015.
The proceeds of the offering will be used by Xmet for additional
development work on its Blackflake project near Hearst, Ontario and
for general working capital purposes.
"As Blackflake continues to grow, we need greater financial
resources for the project's development and in order to create
value for our shareholders. Furthermore in the current market
environment, we consider it prudent to accept investment when there
are institutional investors wanting to commit a hard dollar
investment towards the advancement of your project," said Alexander
Stewart, Chairman and CEO of Xmet.
The securities issued in connection with the first tranche of
the private placement are subject to a statutory four month hold
period expiring on June 20, 2014. Xmet paid finders' fees equal to
approximately 8% of the gross proceeds raised in connection with
the private placement plus due diligence and settlement fees, and
issued 277,298 compensation options equalling approximately 8% of
the units issued pursuant to the private placement. Each whole
compensation option entitles the holder thereof to acquire one
common share of Xmet at a price of $0.11 at any time until August
19, 2015.
Xmet's Blackflake Project comprises over 29,000 acres of 100%
owned claims approximately 60km to the northwest of Hearst, Ontario
and is adjacent to Zenyatta's Hydrothermal Graphite Deposit. Xmet
has conducted two airborne electromagnetic surveys, VTEM and TDEM,
which discovered multiple electromagnetic conductors making the
targets highly prospective for further exploration and has
developed an excellent working relationship with the Constance Lake
First Nation, with whom the company signed an ongoing Exploration
Agreement. Xmet expects to receive permits from the MNDM in the
next few days which will enable it to commence line cutting and
ground IP over targets in February with drilling scheduled for
March.
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.
Certain information in this press release may contain
forward-looking statements. This information is based on current
expectations that are subject to significant risks and
uncertainties that are difficult to predict. Actual results might
differ materially from results suggested in any forward-looking
statements. Xmet assumes no obligation to update the
forward-looking statements, or to update the reasons why actual
results could differ from those reflected in the forward
looking-statements unless and until required by securities laws
applicable to Xmet. Additional information identifying risks and
uncertainties is contained in filings by Xmet with Canadian
securities regulators, which filings are available under Xmet's
profile at www.sedar.com.
Xmet Inc.Alexander StewartChief Executive Officer(416)
644-6588astewart@xmet.caXmet Inc.Stephen StewartPresident(416)
644-6588sstewart@xmet.ca