February 3, 2020 Rockport, ON, Canada – New Age Metals Inc. (the “Company”) (TSX.V: NAM; OTCQB: NMTLF; FSE: P7J) has closed a fully subscribed private placement of 40 million units for aggregate gross proceeds of $2-million managed by IBK Capital Corp. Each Unit consisted of one common share and one common share purchase warrant (“Warrant”), where each Warrant entitles the holder to purchase one additional common share at a price of $0.10 per share for a period of two (2) years from the date of closing.
In connection with the closing, the Company paid fees to IBK Capital Corp. in the amount of $104,000 in cash and issued 3,300,000 broker warrants. The Company also paid fees to Mackie Research Capital Corporation in the amount of $28,000 in cash and issued 700,000 broker warrants. Each broker warrant is exercisable into a unit under the same terms as the private placement.
New Age Metals is pleased to announce that Eric Sprott, through 2176423 Ontario Ltd., has purchased $700,000 of the fully subscribed private placement. A new insider was created in connection with the financing. 2176423 Ontario Ltd. (a company beneficially owned by Eric Sprott) purchased 14,000,000 units of the Company representing approximately 18.56% of the Company’s current issued and outstanding shares on a post conversion beneficial ownership basis. Prior to his purchase, 2176423 Ontario Ltd. (Eric Sprott) did not beneficially own or control any securities of the Company. The Units were acquired for investment purposes.
Harry Barr, Chairman and Chief Executive Officer of New Age Metals, reports: “We are very pleased to have Eric Sprott as a partner of New Age Metals Inc. His record of success is quite simply unmatched.”
The gross proceeds of this financing will be used to develop the Company’s 100-per-cent owned River Valley palladium project, located 60 miles from the Sudbury metallurgical complex in Sudbury, Ontario.
All securities issued in connection with the private placement are subject to regulatory approval and are subject to a four month plus one day hold period expiring on June 4, 2020, in accordance with applicable Securities Laws.
New Age Metals is a junior mineral exploration and development company focused on the discovery, exploration and development of green metal projects in North America. The Company has two divisions; a Platinum Group Metals division and a Lithium/Rare Element division. The PGM division includes the 100% owned River Valley Project, one of North Americas largest undeveloped Platinum Group Metals Projects, situated 100 kilometers from Sudbury, Ontario as well as the Genesis PGM Project in Alaska. The Lithium division is the largest mineral claim holder in the Winnipeg River Pegmatite Field where the Company is exploring for hard rock lithium and various rare elements such as tantalum and rubidium. Our philosophy is to be a project generator with the objective of optioning our projects with major and junior mining companies through to production. New Age Metals is a junior resource company on the TSX Venture Exchange, trading symbol NAM, OTCQB: NMTLF; FSE: P7J with 96,843,766 shares issued to date.
Investors are invited to visit the New Age Metals website at www.newagemetals.com where they can review the company and its corporate activities. Any questions or comments can be directed to firstname.lastname@example.org or Harry Barr at Hbarr@newagemetals.com or Cody Hunt at Codyh@newagemetals.com or call 613 659 2773.
On behalf of the Board of Directors
Harry G. Barr
Chairman and CEO
Neither the 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.
Cautionary Note Regarding Forward Looking Statements: This release contains forward-looking statements that involve risks and uncertainties. These statements may differ materially from actual future events or results and are based on current expectations or beliefs. For this purpose, statements of historical fact may be deemed to be forward-looking statements. In addition, forward-looking statements include statements in which the Company uses words such as “continue”, “efforts”, “expect”, “believe”, “anticipate”, “confident”, “intend”, “strategy”, “plan”, “will”, “estimate”, “project”, “goal”, “target”, “prospects”, “optimistic” or similar expressions. These statements by their nature involve risks and uncertainties, and actual results may differ materially depending on a variety of important factors, including, among others, the Company’s ability and continuation of efforts to timely and completely make available adequate current public information, additional or different regulatory and legal requirements and restrictions that may be imposed, and other factors as may be discussed in the documents filed by the Company on SEDAR (www.sedar.com), including the most recent reports that identify important risk factors that could cause actual results to differ from those contained in the forward-looking statements. The Company does not undertake any obligation to review or confirm analysts’ expectations or estimates or to release publicly any revisions to any forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. Investors should not place undue reliance on forward-looking statements.