Collective Metals closes private placement raising CDN $1.44 million

Collective Metals Inc. (CSE: COMT | OTC: CLLMF | FSE: TO1) completed a non-brokered private placement that raised gross proceeds of CDN $1,438,665.72, the company announced.

The Vancouver-based resource exploration company issued 16,925,479 units at $0.085 per unit. Each unit consists of one common share and one warrant that allows the holder to purchase an additional share at $0.105 for 24 months from the closing date.

The warrants include an acceleration clause that permits the company to shorten the expiry period if its shares close at or above $0.20 for 10 consecutive trading days on the Canadian Securities Exchange. Under this provision, the warrants would expire 30 calendar days after the company issues a news release announcing the acceleration.

Collective Metals paid finder's fees totaling $57,020.75 and issued 670,833 finder's warrants to third parties in connection with the offering. The finder's warrants carry the same terms as the warrants included in the units.

The company stated it will use the proceeds for general working capital purposes. All securities issued are subject to a four-month-and-one-day statutory hold period.

Collective Metals specializes in critical and precious metals exploration in North America. Its Rocas project covers 4,002 hectares located 75 kilometers southwest of the Key Lake Mine and Mill facilities in Saskatchewan. The project contains several uranium showings, with historical samples showing grades up to 0.5% uranium oxide along approximately 900 meters of strike length, according to the company.

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