Grid Metals Corp. Closes C$2.74M Private Placement

TORONTO, ON / ACCESSWIRE / December 24, 2020 / Grid Metals Corp. (the "Company") (TSXV: GRDM) is pleased to announce that it has completed its previously announced private placement for gross proceeds of
$ 2,742,966 (the "Offering"), including the exercise of the Company's Over-Allotment Option. As part of the offering, the Company sold the following securities:
2,833,336 units of the Company (the "Units") at a price of $ 0.15 per unit;
4,988,028 Company Flow-Through Units (the "FT Units") to traditional flow-through buyers at a price of $ 0.17 per FT Unit; and,
7,000,002 Company Flow-Through Units (the "Charity FT Units") have been sold to nonprofit flow-through buyers at a price of $ 0.21 per Charity FT Unit.
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Each Unit consisted of one common share of the Company (each a "Common Share") and one half of a warrant to purchase one common share (a "Warrant"). Each warrant entitles the holder to purchase one share of common stock at a price of $ 0.22 at any time on or before December 24, 2022. Each FT Unit and Charity FT Unit consists of one common share of Company issued as issued to be "flow-through shares" within the meaning of the Income Tax Act (Canada) (one "FT share" each) and one half of a warrant.
The net proceeds from the Shares will be used primarily for exploration of the Company's East Bull Lake Palladium property and general working capital purposes. Proceeds from the sale of FT Shares will be used to incur "Canadian Exploration Costs" as defined in Subsection 66.1 (6) of the Income Tax Act and "Inflow from Mining Expenses" as defined in Subsection 127 (9) of the Income Tax Act ("Qualifying Expenses" ). These proceeds will be communicated to the subscribers with an effective date no later than December 31, 2020 in the amount of the total amount of at least the total amount of the gross proceeds from the issue of FT shares.
Red Cloud Securities inc. ("Red Cloud") acted as a finder in connection with part of the offer. In connection with the offering, Red Cloud received a cash commission of $ 166,090 (out of a total of $ 171,495.47 in cash) and 875,105 finder warrants out of a total of 895,699 finder warrants paid. Each warrant entitles the finder to purchase one common share of the Company at a price of $ 0.15 per share through December 24, 2022. Resale of Company securities issued in the Offer will be restricted, including any holding period under Canadian securities laws of four months and one day after the closing date of the offer. A company insider participated in the FT 100,000 share offer, which is a related party transaction under the guidelines of the TSX Venture Exchange (the "TSXV") and Multilateral Instrument 61-101 - Protection of Minority Security Holders in the Specific traded transactions ("MI 61-101"). The Company relied on the exemptions from the valuation and minority approval requirements set out in Sections 5.5 (a) and 5.7 (1) (a) of MI 61-101 as the fair value of the transaction did not exceed 25% of the company's market capitalization. A material change report in relation to the closing of the offer will be submitted less than 21 days prior to the closing date of the offer as the insider participation was only closed shortly before the closing and the company wanted to close the offer as soon as possible. Completion of the Offer has been conditionally approved by the TSXV, with final acceptance subject to compliance with customary requirements of the TSXV.
This press release does not constitute an offer of securities for sale in the United States. The securities being offered have not been and will not be registered under the United States Securities Act of 1933, as amended, and such securities may not be registered in the United States without US registration or registration Exemption from US registration requirements.
About Grid Metals Corp.
Grid Metals Corp. is an exploration and development company with a diversified portfolio of projects in the metal sectors of the Nickel-Copper-Platinum Group. These raw materials are of vital importance for the emerging battery metals, energy storage and automotive industries. All of Grid's projects are located in safe North American mining areas. The company focuses on timely advancement of its real estate portfolio through prudent exploration and development activities. To learn more about Grid Metals Corp. To find out, please visit www.gridmetalscorp.com.
On behalf of the Board of Grid Metals Corp.
Robin Dunbar - President, CEO & Director Phone: 416-955-4773 Email: rd@gridmetalscorp.com
David Black - Investor Relations Email: info@gridmetalscorp.com
We are looking for a safe haven. This press release contains forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995 and forward-looking information within the meaning of the Securities Act (Ontario) (collectively, "forward-looking statements"). Such forward-looking statements may include the company's plans for its properties, the macroeconomic potential of its properties, the availability of adequate financial resources, and known and unknown risks, uncertainties and other factors that may express or imply actual results, performance or success such forward-looking statements are materially different. These factors include, but are not limited to, risks and uncertainties related to potential political risks, uncertainties in production and capital cost estimates, and the potential for unexpected costs and expenses, physical risks in mining, metallurgical risks, currency fluctuations, and fluctuations in the price of nickel, cobalt, copper, and others Metals, completion of economic evaluations, changes in project parameters as the plans are further refined, inability or failure to obtain adequate funding in a timely manner, and other risks and uncertainties, including management discussion and analysis for the most recent financial period described in the company and reports on material changes that have been filed with the Canadian Securities Administrators and are available at www.sedar.com.

SOURCE: Grid Metals Corp.


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