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Highlights
- Bolt Metals successfully closes first tranche of CAD$660,000 offering.
- Company issues 4,125,000 Quebec Flow-Through Shares (QFTShares) at CAD$0.16 each.
- Proceeds to fund exploration on Northwind Property, Urban-Berry Greenstone Belt, Quebec.
Bolt Metals Corp. (CSE: BOLT) (OTCQB: PCRCF) has announced the successful closing of the first tranche of its previously announced non-brokered private placement of Quebec Flow-Through Shares (QFTShares). The company issued a total of 4,125,000 QFTShares at a price of CAD$0.16 per share, raising gross proceeds of CAD$660,000.
The issued QFT Shares are designed to qualify as “flow-through shares” under the Canadian Income Tax Act (Tax Act), specifically under subsection 66(15). These types of shares provide a unique tax advantage to investors, as they allow the company to pass on the tax benefits of certain qualifying exploration expenses to the shareholders. The proceeds from this offering will be allocated to incurring "Canadian exploration expenses" and "flow-through mining expenditures," both of which are defined in the Tax Act, to advance the exploration of Bolt Metals’ Northwind Property, located in the Urban-Berry Greenstone Belt, Quebec.
Exploration Plans and Use of Proceeds
The funds raised will primarily be directed towards further exploration of the Northwind Property. This property is part of Bolt’s expanding portfolio of mineral assets in Quebec, an area well known for its rich geology and mineralization potential. The Urban-Berry Greenstone Belt, where the Northwind Property is situated, is an established mining region that offers a favorable setting for exploration and potential resource development. Bolt Metals has outlined plans to carry out additional exploration work at this site, further advancing its efforts in uncovering valuable mineral deposits.
Finder’s Fees and Broker Warrants
In connection with the Offering, Bolt Metals has paid finder’s fees to certain qualified non-related parties. These fees total CAD$39,600, in addition to 247,500 Broker Warrants. Each Broker Warrant gives the holder the right to acquire one common share of the company at CAD$0.16 per share for two years from the date of issuance. These warrants are issued in accordance with the policies of the Canadian Securities Exchange (CSE), where Bolt Metals is listed. The Broker Warrants provide additional incentive for investors and brokers alike, offering the potential for further participation in the company’s future growth.
Regulatory and Hold Period Compliance
As per regulatory requirements, all securities issued in the Offering are subject to a hold period of four months plus one day from the date of issuance. This restriction is intended to ensure compliance with resale rules and applicable securities legislation. The company’s compliance with these rules further strengthens its commitment to maintaining transparent and responsible operations within the legal framework of the Canadian market.
Looking Ahead
With the successful closure of this financing tranche, Bolt Metals is well-positioned to continue its exploration efforts in Quebec. The funds raised will help accelerate the development of its Northwind Property, which is a key part of its long-term strategy for growth. The company’s strong exploration program and its ability to attract investor interest highlight its potential as a leading player in the North American mineral exploration sector.
