McFarlane Lake acquires 19.9% stake in iMetal Resources for $1.42M

McFarlane Lake Mining Limited (CSE: MLM, OTC: MLMLF) has completed a $1,420,085 investment in iMetal Resources, Inc. (TSXV: IMR, OTCQB: IMRFF), acquiring 14,200,852 units at $0.10 per unit, according to a press release from the company.

Each unit consists of one iMetal common share and one warrant exercisable at $0.175 per share for three years from closing. McFarlane now holds approximately 19.9% of iMetal's issued and outstanding common shares. If all warrants are exercised, McFarlane's stake would rise to approximately 33.2% on a partially diluted basis.

The investment was made as part of iMetal's non-brokered private placement of up to 30,000,000 units at $0.10 per unit, targeting gross proceeds of up to $3,000,000.

Under an investor rights agreement, McFarlane has the right to nominate one director to iMetal's board, participate in future equity issuances to maintain its pro rata interest, and, subject to iMetal board approval, provide technical oversight on exploration at iMetal's Gowganda property in Ontario.

iMetal is a Canadian junior exploration company with resource properties in Ontario and Quebec. McFarlane is a gold exploration company focused on its Juby Gold Project near Gowganda, Ontario.

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