BeMetals Closes $4.8 Million Private Placement
BeMetals Corp. (TSXV: BMET, OTCQB: BMTLF, Frankfurt: 1OI.F) has successfully closed its non-brokered private placement, raising $4,840,600 through the issuance of 48,406,000 units at $0.10 per unit.
John Wilton, BeMetals’ President and CEO, expressed satisfaction with the closing, highlighting the support from B2Gold, existing shareholders, and new investors. The secured funds will enable the commencement of field operations and exploration drilling during the dry season, focusing on expanding copper mineralization in the Zambian Copperbelt’s D-Prospect.
Each unit in the private placement comprises one common share and one-half share purchase warrant, with each whole warrant exercisable at $0.18 per share until July 31, 2025. The issued securities are subject to a hold period under Canadian securities laws, expiring on December 1, 2024.
In connection with the private placement, BeMetals paid cash finder’s fees totaling $95,280 to Haywood Securities Inc. and Canaccord Genuity Corp.
The net proceeds will be allocated towards the exploration and advancement of BeMetals’ Pangeni Copper Project in Zambia and for general corporate purposes.
B2Gold Corp., a significant stakeholder, subscribed for 22,000,000 units, contributing $2.2 million. Other related parties, including company insiders, invested an additional $812,500. As B2Gold’s involvement constitutes a “related party transaction” under Multilateral Instrument 61-101, BeMetals relied on exemptions from formal valuation and minority shareholder approval requirements.
Before the private placement, B2Gold held 33,276,115 shares and convertible debentures worth $5.3 million, equating to approximately 18.8% ownership on a partially diluted basis. Post-placement, B2Gold’s holdings increased to 55,276,115 shares (24.5%), with additional warrants and debentures potentially raising its stake to 33.9%.
B2Gold’s acquisition is for investment purposes, and it may adjust its holdings based on market conditions and other factors. The early warning report is available on BeMetals’ SEDAR+ profile.
BeMetals will issue 3,088,600 shares to fulfill a US$225,000 milestone payment under the earn-in and option agreement for the Pangeni Copper Project, subject to TSX Venture Exchange approval. These shares will have a four-month statutory hold period.
