Electric Metals closes $4 million private placement led by Eric Sprott

Electric Metals (USA) Limited (TSXV: EML) (OTCQB: EMUSF) completed a non-brokered private placement raising approximately C$4 million in gross proceeds, according to a company statement.

The financing was led by Eric Sprott and Crescat Capital, with proceeds intended to advance the company's North Star Manganese Project in Minnesota. The project aims to supply high-purity manganese products for the U.S. electric vehicle battery and energy sectors.

Under the offering, Electric Metals issued 13.33 million units at C$0.30 per unit. Each unit includes one common share and one-half of a warrant exercisable at C$0.45 for 18 months. The securities are subject to applicable hold periods under securities laws and exchange policies.

Eric Sprott's participation in the offering resulted in him becoming an insider of the company, holding approximately 11.4% on a partially-diluted basis. Company directors and existing shareholders also participated in the placement.

"The positive PEA confirms the strong economics and strategic importance of the North Star Manganese Project as a potential domestic source of high-purity manganese," said Kevin Smith, founder and CEO of Crescat Capital.

Net proceeds will fund ore characterization, metallurgical testing, environmental studies, permitting for the Emily Mine, and general corporate purposes. The company stated that 96% of high-purity manganese sulfate monohydrate is currently produced in China.

Electric Metals operates the Emily manganese deposit in Minnesota and is developing the North Star Manganese Project, which includes a planned high-purity manganese sulfate monohydrate chemical plant in the U.S.

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