Electric Metals plans private placement to raise up to CAN$4 million

Electric Metals (USA) Limited (TSXV:EML)(OTCQB: EMUSF) announced plans to complete a non-brokered private placement offering of up to 13,333,334 units at CAN$0.30 per unit for gross proceeds of up to CAN$4 million.

Each unit consists of one common share and one-half of one non-transferable common share purchase warrant. Each whole warrant will be exercisable to acquire one share at CAN$0.45 per share for 18 months from the date of issuance.

The company intends to use proceeds to advance initiatives at its North Star Manganese Project, including additional ore characterization, metallurgical and process test work, an HPMSM scoping study, environmental baseline studies, and permitting initiation for the Emily Mine. Funds will also support community outreach and general corporate purposes.

The company may engage agents or finders in connection with the offering and may pay fees to such parties. Company insiders may participate in the offering, which would constitute a related party transaction under Multilateral Instrument 61-101.

Electric Metals expects insider participation would be exempt from formal valuation and minority shareholder approval requirements as neither the fair market value nor consideration paid by insiders will exceed 25% of the company's market capitalization.

The company's principal asset is the Emily manganese deposit in Minnesota. Electric Metals describes itself as advancing manganese and silver projects to support electrification markets, with a focus on establishing domestic U.S. supply of high-purity manganese chemical and metal products.

The securities will not be registered under the U.S. Securities Act of 1933 and may not be offered or sold in the United States absent registration or an available exemption.

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