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Highlights
- Madison Metals plans to raise up to CDN$2 million through a private placement.
- The company will issue 6 million units, each consisting of a common share and a half-warrant.
- Proceeds will be used for drilling activities at Howells Lake Antimony Gold Project.
Madison Metals Inc. (CSE:GREN) is pleased to announce its plan to complete a private placement financing for a total of up to 6,000,000 units (the “Units”) at a price of CDN$0.30 per Unit. The Offering aims to raise gross proceeds of up to CDN$2,000,000. Each Unit consists of one common share (a “Common Share”) and one-half of a common share purchase warrant (each whole warrant being a “Warrant”). Each full Warrant grants the holder the option to purchase one Common Share at a price of $0.45 for a period of eighteen (18) months following the closing of the Offering.
This strategic financing comes at a time when the company is gearing up for further development at its Howells Lake Antimony Gold Project. Madison Metals intends to use the proceeds from the Offering primarily to fund drilling activities at the project, with the remainder directed toward general and administrative expenses. The Howells Lake Antimony Gold Project is crucial to the company’s long-term growth, and the funds raised will support its ongoing exploration and development efforts.
In addition to the private placement, Madison Metals also plans to settle an aggregate amount of $300,000 in debt owed to various creditors through the issuance of Common Shares at a deemed price of $0.30 per share. Notably, two of the creditors—Duane Parnham and Roger Laine—are insiders of the Company. The issuance of securities to these insiders constitutes a "related party transaction" as defined under TSXV Policy 5.9 and Multilateral Instrument 61-101. However, the Company will rely on exemptions from the formal valuation and minority shareholder approval requirements outlined in sections 5.5(a) and 5.7(a) of MI 61-101. This is because the value of the securities being issued to the insiders does not exceed 25% of the Company’s market capitalization, thus allowing the company to bypass certain regulatory requirements.
The issuance of these securities to insiders and the accompanying private placement reflects Madison Metals' commitment to enhancing its financial position and advancing its key projects. The Company’s leadership team, along with its strategic partners, is focused on creating value for its shareholders while maintaining strong governance practices in line with regulatory standards.
With the anticipated completion of the Offering, Madison Metals will be better positioned to continue its exploration activities and maximize the potential of its mining projects. The debt settlement also provides the company with a more flexible capital structure, ensuring that Madison can move forward with its plans without the burden of outstanding obligations.
