/NOT FOR DISTRIBUTION TO
Comet Lithium will use the net proceeds from the sales of the Shares for general and administrative purposes and for exploring the Corporation's mining properties and will use the net proceeds from the sales of the Flow-Through Shares for exploring the Corporation's mining properties the located in the provinces of Québec, with a focus on its 100%-owned Liberty and Troilus lithium properties.
"The completion of this financing marks another great milestone for Comet Lithium as we are now well positioned to move our 2024 exploration plans forward. We look forward to receiving the results from our gravity survey, as we move towards the drilling phase at our Liberty Property", commented
As previously announced, following a first closing of the private placement held on
As a result of the second and final closing, there are 24,728,990 common shares of Comet Lithium issued and outstanding. Under applicable securities legislation and the policies of the
In connection with the second and final closing of the Private Placement, Comet Lithium paid a cash commission to
Related Party Transactions
Two officers, one of which is also a director of the Comet Lithium, and one director of Comet Lithium (collectively, the "Insiders") purchased indirectly, an aggregate of 150,000 Shares for a total consideration of
Immediately after the closing of the Private Placement, (i)
Each of the Insiders is considered a "related party" and an "insider" of the Corporation for the purposes of applicable securities laws and stock exchange rules. The subscription and issuance of Shares to each of the Insiders constitute a related party transaction, but is exempt from the formal valuation and minority approval requirements of Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions ("MI 61-101") as the Corporation's securities are not listed on any stock exchange identified in Section 5.5(b) of MI 61-101 and neither the fair market value of the Shares issued to each of the Insiders, nor the fair market value of the subscription of each Insider under the Private Placement, exceeds 25% of the Corporation's market capitalization. The Corporation did not file a material change report with respect to the participation of the Insiders at least 21 days prior to the closing of the Private Placement as the Insiders participation was not determined at that time.
Messrs. Metcalfe and Bellefleur, each of whom is a director of the Corporation (collectively, the "Non-Independent Directors"), have disclosed their interest to the Board of the Directors of the Corporation pursuant to Section 120 of the Canada Business Corporations Act to the effect that they may participate in the Private Placement and subscribe to Shares. The terms of the Private Placement and the agreements relating thereto were submitted to and unanimously approved by way of a resolution adopted by all the directors of the Corporation other than the Non-Independent Directors. The Non-Independent Directors did not vote on the resolution to approve the Private Placement and the agreements relating thereto. The remaining directors determined that the Private Placement was in the best interest of the Corporation.
Comet Lithium is a dynamic lithium-focused exploration company active in the prolific
This news release contains statements that may constitute "forward-looking information" within the meaning of applicable Canadian securities legislation. Forward-looking information may include, among others, statements regarding the future plans, costs, objectives or performance of Comet Lithium, or the assumptions underlying any of the foregoing. In this news release, words such as "may", "would", "could", "will", "likely", "believe", "expect", "anticipate", "intend", "plan", "estimate" and similar words and the negative form thereof are used to identify forward-looking statements. Forward-looking statements should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether, or the times at or by which, such future performance will be achieved. No assurance can be given that any events anticipated by the forward-looking information will transpire or occur, including the results of any exploration program on the Corporation's mining properties. Forward-looking information is based on information available at the time and/or management's good-faith belief with respect to future events and are subject to known or unknown risks, uncertainties, assumptions and other unpredictable factors, many of which are beyond Comet Lithium's control. These risks, uncertainties and assumptions include, but are not limited to the risks, uncertainties and assumptions described under "Financial Instruments" and "Risk and Uncertainties" in Comet Lithium's Annual Report for the fiscal year ended
Neither the
SOURCE
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