TORONTO, ONTARIO--(Marketwired - Feb. 19, 2014) - Xmet Inc. (TSX VENTURE:XME) ("Xmet") is pleased to announce that, subject to acceptance of the TSX Venture Exchange, it has completed a non-brokered private placement of $400,040 in hard dollars. Xmet will issue units to the investors, with each unit consisting of one common share and one common share purchase warrant for 11 cents per unit. Each warrant entitles the holder thereof to acquire one common share of Xmet at a price of $0.175 at any time until August 19, 2015.
The proceeds of the offering will be used by Xmet for additional development work on its Blackflake project near Hearst, Ontario and for general working capital purposes.
"As Blackflake continues to grow, we need greater financial resources for the project's development and in order to create value for our shareholders. Furthermore in the current market environment, we consider it prudent to accept investment when there are institutional investors wanting to commit a hard dollar investment towards the advancement of your project," said Alexander Stewart, Chairman and CEO of Xmet.
The securities issued in connection with the first tranche of the private placement are subject to a statutory four month hold period expiring on June 20, 2014. Xmet paid finders' fees equal to approximately 8% of the gross proceeds raised in connection with the private placement plus due diligence and settlement fees, and issued 277,298 compensation options equalling approximately 8% of the units issued pursuant to the private placement. Each whole compensation option entitles the holder thereof to acquire one common share of Xmet at a price of $0.11 at any time until August 19, 2015.
Xmet'sBlackflake Project comprises over 29,000 acres of 100% owned claims approximately 60km to the northwest of Hearst, Ontario and is adjacent to Zenyatta's Hydrothermal Graphite Deposit. Xmet has conducted two airborne electromagnetic surveys, VTEM and TDEM, which discovered multiple electromagnetic conductors making the targets highly prospective for further exploration and has developed an excellent working relationship with the Constance Lake First Nation, with whom the company signed an ongoing Exploration Agreement. Xmet expects to receive permits from the MNDM in the next few days which will enable it to commence line cutting and ground IP over targets in February with drilling scheduled for March.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Certain information in this press release may contain forward-looking statements. This information is based on current expectations that are subject to significant risks and uncertainties that are difficult to predict. Actual results might differ materially from results suggested in any forward-looking statements. Xmet assumes no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those reflected in the forward looking-statements unless and until required by securities laws applicable to Xmet. Additional information identifying risks and uncertainties is contained in filings by Xmet with Canadian securities regulators, which filings are available under Xmet's profile at www.sedar.com.
FOR FURTHER INFORMATION PLEASE CONTACT:
Xmet Inc.Alexander Stewart
Chief Executive Officer
firstname.lastname@example.orgXmet Inc.Stephen Stewart
Source: Xmet Inc.