Alaska Energy Metals Secures $5M Funding for Nickel Project
Recent Funding Success of Alaska Energy Metals
Highlights:
- An additional $5,000,000 has been raised in a second round of Special Warrant and Unit offerings, following the first round offerings that totalled $3,679,564.
- Combined, more than $8.68 million has been secured between these two offerings.
- Alaska Energy Metals is now fully funded for the drilling program currently underway at the Nikolai nickel project; drilling commenced in July and has successfully concluded on the Canwell prospects.
- The focus of drilling operations is to explore extensions of the existing Eureka nickel deposit.
- Initial metallurgical studies to assess metal recovery rates are currently in progress.
In Vancouver, Alaska Energy Metals Corporation (TSX-V: AEMC, OTCQB: AKEMF) recently announced a significant financial milestone, successfully closing a non-brokered special warrant offering that raised $4,520,000. This is complemented by a concurrent private placement of units which contributed an additional $480,000. The total gross proceeds from these capital-raising efforts now stand at $8,679,564.
Gregory Beischer, President and CEO of Alaska Energy Metals, shared his enthusiasm regarding this financial achievement: "Attracting this level of financing not only highlights the potential of the Nikolai Nickel Project but also reflects our team's dedication to exploration and the trust placed in our new company directors to drive shareholder value."
Details of the Special Warrant Offering
During this offering, 30,133,330 special warrants were distributed at a price of $0.15 each, yielding $4,520,000. Each special warrant converts automatically into one unit of the company, with every unit composed of one common share and a purchase warrant. Each warrant allows the holder to acquire an additional common share at $0.20 for a period of three years.
The automatic conversion of the special warrants will occur on the earlier of a prospectus supplement filing or four months following the offering's closure. The company aims to file the prospectus supplement within 60 days post-closing, though there’s no guarantee this will happen before the expiry of the statutory four-month hold period.
As part of the terms, the company compensated finders with approximately $218,726, equivalent to 7% of the gross proceeds raised. Additionally, 1,458,176 broker warrants were issued, each convertible to shares at $0.20 for three years.
The securities issued will undergo a four-month hold period, with additional legal restrictions in place.
Overview of the Unit Offering
In a separate non-brokered private placement, approximately 3,200,000 units were sold, bringing in gross proceeds of $480,000. Each unit similarly consists of one share and one warrant, with the terms for the warrants identical to those outlined in the special warrant offering.
Finder fees for this transaction totaled $33,600, representing 7% of the raised gross proceeds. An aggregate of 224,000 broker warrants also formed part of this compensation. All securities in connection with this private placement are subject to a four-month hold period aligned with applicable securities laws.
Use of Proceeds from Offerings
The funds raised will support ongoing drilling in both the Canwell prospect and the Eureka deposit at the Nikolai Nickel Project. Additionally, some of the proceeds will be allocated toward metallurgical studies on drill cores from the Eureka deposit, and for the company's working capital and marketing strategies.
About Alaska Energy Metals Corporation
Alaska Energy Metals Corporation is dedicated to providing the essential materials required for a secure energy future while aiming to deliver value to shareholders. With a focus on the large-scale, polymetallic Eureka deposit, the company’s flagship Nikolai project stands poised as a major source of strategic energy-related metals in North America, thanks to its proximity to existing infrastructure.
In addition, Alaska Energy Metals holds a secondary project, the 'Angliers-Belleterre', located in western Quebec. The company emphasizes excellence in environmental stewardship while managing resources responsibly, aiming to build public trust through tangible ESG performance.
Contact Information:
For inquiries, please reach out to Sarah Mawji, Public Relations at Venture Strategies, via email at sarah@venturestrategies.com.
Frequently Asked Questions
What is the total amount raised by Alaska Energy Metals in the recent offerings?
The total amount raised from the two offerings is $8.68 million.
What will the proceeds from the offerings be used for?
The proceeds will fund drilling programs, metallurgical studies, and cover working capital.
What is the mechanism for converting special warrants into units?
Special warrants automatically convert into units at specified conditions, either through the filing of a prospectus supplement or after a four-month period.
Who is leading Alaska Energy Metals Corporation?
Gregory Beischer serves as the President and CEO, leading the company’s strategic initiatives.
What is the Nikolai Nickel Project's significance?
The project is crucial for providing strategic energy-related metals, supporting both national security and sustainability initiatives in North America.
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