T2 Metals Corp. (TSXV: TWO) has presented an application to the TSX Venture Exchange to raise an aggregate of up to $1.4 million by issuing FT units. The capital raised from this issuance will be used for “flow-through mining expenditures” as laid out in the Canadian Income Tax Act subsection 127(9) and renounced to those who subscribed to the FT units in the fiscal year December 31, 2022. The funds will primarily be allocated towards exploratory activities on the Company’s properties, with the remainder going towards general operational costs. All securities issued during this transaction will have a four-month holding period and are subject to the exchange’s approval.
The Company plans to raise $1.4 million by offering 2,777,777 flow-through units at a rate of $0.36 each to accumulate up to a total of $1,000,000. Every FT unit will comprise one flow-through common share, one non-flow-through common share purchase warrant, which can be exercised to obtain one additional non-flow-through common share at the cost of $0.45 for 36 months following the date of issuance, and 1,379,310 units in a non-flow-through private placement at $0.29 per unit, to generate up to $400,000. Each unit will be composed of one common share and one-half of a common share purchase Warrant, with each whole Warrant being redeemable to receive one additional common share at an exercise price of $0.45 for 36 months from the date of issuance.
The Company has the right to make the Warrants expire earlier if the value of its common shares, weighed by volume, is $0.90 or higher for 20 consecutive stock exchange days, and it will give written notification of this action with a press release. Additionally, those involved in the Financing may receive finder’s fees, which the exchange must approve.