Founders Metals Announces C$15 Million Bought Deal Financing & LOI with Strategic Investor
October 10 2024 - 7:32AM
Founders Metals Inc. (TSX-V: FDR, OTCQX: FDMIF, FSE: 9DL0)
(“Founders” or the “Company”) has announced today that it has
entered into an agreement with a syndicate of underwriters led by
BMO Capital Markets including Paradigm Capital and Clarus
Securities, under which the underwriters have agreed to buy on a
bought deal basis by way of private placement, 6,250,000 common
shares (the “Common Shares”) of the Company, at a price of C$2.40
per Common Share for gross proceeds of approximately C$15 million
(the “Offering”).
In addition, Founders has agreed to terms on a
non-binding letter of intent (“LOI”) with a major precious metals
producer for a 5% equity investment (the “Strategic Investment”).
Complete details of the transaction will follow in a separate
release. The Company expects the aggregate proceeds of the Bought
Deal and Strategic Investment to fully fund the 2025 exploration
activities.
The Offering is expected to close on or about
October 24, 2024 and is subject to the Company receiving all
necessary regulatory approvals, including the approval of the TSX
Venture Exchange. The Company intends to use the net proceeds of
the Offering for exploration activities on the Antino Gold Project
and for general corporate purposes.
The securities have not been, and will not be,
registered under the 1933 Act, as amended, or any U.S. state
securities laws, and may not be offered or sold in the United
States without registration under the 1933 Act and all applicable
state securities laws or compliance with the requirements of an
applicable exemption therefrom. This press release shall not
constitute an offer to sell or the solicitation of an offer to buy
securities in the United States, nor shall there be any sale of
these securities in any jurisdiction in which such offer,
solicitation or sale would be unlawful.
About Founders Metals Inc.
Founders Metals is a Canadian-based exploration
company focused on advancing the Antino Gold Project located in
Suriname, South America, in the heart of the Guiana Shield. Antino
is 20,000 hectares and has produced over 500,000 ounces of gold
from surface and alluvial mining to date1. The Company drilled
10,000 metres in 2023 and is fully financed for drilling in
2024.
12022 Technical Report – Antino Project;
Suriname, South America. K. Raffle, BSc, P. Geo & Rock
Lefrançois, BSc, P.Geo.
ON BEHALF OF THE BOARD OF DIRECTORS,
Per: "Colin
Padget"
Colin PadgetPresident, Chief
Executive Officer, and Director
Contact Information
Katie MacKenzie, Vice President, Corporate
Developmentkatiem@fdrmetals.com, 1.306.537.8903
Neither TSX Venture Exchange nor its Regulation
Services Provider accepts responsibility for the adequacy or
accuracy of this release.
Cautionary Statement Regarding
Forward-Looking Information
This press release contains “forward-looking
information” within the meaning of applicable Canadian securities
legislation. Forward-looking information includes, without
limitation, statements regarding the use of proceeds from the
Company’s recently completed financings and the future or prospects
of the Company. Generally, forward-looking information can be
identified by the use of forward-looking terminology such as
“plans”, “expects” or “does not expect “, “is expected “, “budget”,
“scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or
“does not anticipate”, or “believes”, or variations of such words
and phrases or state that certain actions, events or results “may”,
“could”, “would”, “might” or “will be taken”, “occur” or “be
achieved”. Forward-looking statements are necessarily based upon a
number of assumptions that, while considered reasonable by
management, are inherently subject to business, market, and
economic risks, uncertainties, and contingencies that may cause
actual results, performance, or achievements to be materially
different from those expressed or implied by forward-looking
statements. Although the Company has attempted to identify
important factors that could cause actual results to differ
materially from those contained in forward-looking information,
other factors may cause results not to be as anticipated,
estimated, or intended. There can be no assurance that such
information will prove to be accurate, as actual results and future
events could differ materially from those anticipated in such
statements. Accordingly, readers should not place undue reliance on
forward-looking information. Other factors which could materially
affect such forward-looking information are described in the risk
factors in the Company’s most recent annual management discussion
and analysis. The Company does not undertake to update any
forward-looking information except in accordance with applicable
securities laws.
All material information on Founders Metals can
be found at www.sedarplus.ca.