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BeMetals Corp. has announced a non-brokered private placement

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The company plans to raise gross proceeds of up to $5 million from the placement of up to 20 million units priced at $0.25 per unit. Each unit consists of one share and one-quarter of a warrant, with each full warrant exercisable at $0.35 for 24 months, subject to an acceleration clause.

Additional Information:

Company: BeMetals Corp.
Website: http://www.bemetalscorp.com
Stock Symbol: TSXV: BMET
Date Published: Apr 4, 2019
Transcript: Available

Video Transcript:

I’m Samantha Deutscher for Investmentpitch Media

BeMetals Corp. has announced a non-brokered private placement.

The company plans to raise gross proceeds of up to $5 million from the placement of up to 20 million units priced at $0.25 per unit.

Each unit consists of one share and one-quarter of a warrant, with each full warrant exercisable at $0.35 for 24 months, subject to an acceleration clause.

The offering is expected to close as an issuance of subscription receipts to be automatically converted into units upon TSX Venture Exchange approval of the previously announced acquisition of the South Mountain Project.

Net proceeds of the financing will be used to fund the company's planned underground drilling of the advanced stage, high-grade, South Mountain Zinc-Silver Project in Idaho, USA, and for exploration core drilling, to test compelling targets from significant aircore results, at the Pangeni Copper Project in Zambia, as well as for general working capital.

South Mountain is a polymetallic development project focused on high-grade zinc and is located approximately 70 miles southwest of Boise, Idaho.

The project was intermittently mined from the late 1800s to the late 1960's and its existing underground workings remain intact and well maintained.

Historic production at the Project has largely come from skarn-hosted and high-grade massive sulfide bodies that remain open at depth and along strike.

These high-grade bodies comprise South Mountain's current mineral resource.

According to historical smelter records approximately 53,642 tons of ore have been mined to date.

These records also indicate average grades; 14.5% Zinc, 10.6 ounces per ton Silver, 0.058 ounces per ton gold, 2.4% Lead, and 1.4% Copper were realised.

John Wilton, President and CEO, stated: "We believe South Mountain has the potential to become an exceptionally high-grade zinc-silver polymetallic mine, subject to successful completion of resource expansion studies and final permitting, and we look forward to advancing this Project aggressively with key members of the Thunder Mountain management team. Over the coming months, we intend to establish drill platforms from the existing underground development, and conduct an approximately 4,500 metre underground drill program to better assess the continuity and expansion potential of the currently identified mineral resource. Upon a successful acquisition of this Project, which would include the delivery of a preliminary economic assessment, BeMetals will have secured its first cornerstone base metal development project. BeMetals will continue to seek further value-accretive acquisitions in the base metal sector for our portfolio, that comply with our robust project selection criteria."

The shares are currently trading at $0.25.

For more information, please visit the company’s website at www.bemetalscorp.com, contact Derek Iwanaka, Investor Relations & Corporate Development, at 604-609-6141 or email diwanaka@bemetalscorp.com.

I’m Samantha Deutscher for Investmentpitch Media