Fireweed Metals Increases Private Placement to C$43M and Appoints New Board Chair

Fireweed Metals Corp.
Fireweed Metals Corp.
Fireweed Metals Corp.
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VANCOUVER, British Columbia, June 17, 2024 (GLOBE NEWSWIRE) -- FIREWEED METALS CORP. (“Fireweed” or the “Company”) (TSXV: FWZ; OTCQX: FWEDF), is pleased to announce that, due to strong demand, it has elected to increase the previously announced non-brokered private placement offering (the “Offering”) of Offered Shares (as defined below).

The increased Offering consists of three parts for gross proceeds of approximately C$43 million, as follows:

  • 12,985,586 common shares of the Company (“Shares”) at a price of C$1.10 per share;

  • 909,090 common shares of the Company that will qualify as “flow-through shares” within the meaning of subsection 66(15) of the Income Tax Act (Canada) (“FT Shares”) at a price of C$1.55 per share; and

  • 15,828,359 common shares of the Company that will qualify as “flow-through shares” within the meaning of subsection 66(15) of the Income Tax Act (Canada) to be sold to charitable purchasers (“CFT Shares” and collectively with the Shares and the FT Shares, the “Offered Shares”) at a price of C$1.73 per share.

The FT Shares and CFT Shares are being issued by the Company at a premium to the trading price of the Shares, as is customary for such issuances, because subscribers of those shares receive a flow-through of the Company’s eligible exploration expenses which are then used by such subscribers as a personal tax attribute. CFT Shares are generally issued at a higher premium relative to FT Shares given subscribers benefit from an additional tax incentive.

The proceeds from the Offering will be used for exploration and development of the Company’s projects in northern Canada, and, to the extent permissible, for general working capital purposes.

The gross proceeds from the issuance of FT Shares and CFT Shares will be used on the Company’s projects to incur Canadian Exploration Expenses (“CEE”), with the largest portion qualifying as “flow-through critical mineral mining expenditures” under the Income Tax Act (Canada). These expenses will be renounced by the Company to the purchasers of FT Shares and CFT Shares with an effective date no later than December 31, 2024, in an aggregate amount no less than the proceeds raised from the issue of FT Shares and CFT Shares.

The issuance of Offered Shares to insiders, including The Lundin Family Trusts, will constitute a “related party transaction”, as defined under Multilateral Instrument 61-101 (“MI 61-101“). Such participation by insiders will be exempt from the formal valuation and minority shareholder approval requirements of MI 61-101 under section 5.5(a) and 5.7(1)(a) of MI 61-101, respectively, as neither the fair market value of the securities acquired by the insiders nor the consideration for the securities paid by such insiders, will exceed 25% of the Company’s market capitalization.

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