Grid Metals completes C$2.3 million second tranche private placement

Grid Metals Corp. (TSXV: GRDM) closed the second tranche of its non-brokered private placement for gross proceeds of C$2.35 million, the company announced October 30.

The second tranche included 7.06 million common shares issued to a strategic investor and existing institutional shareholder at C$0.12 per share, plus 7.58 million charity flow-through shares sold to charitable purchasers at C$0.198 per share.

Combined with the first tranche, the total offering raised C$4.03 million. The company plans to use proceeds for exploration at its Falcon West cesium project and within the Bird River Belt in southeastern Manitoba, targeting nickel, copper and platinum group metals. Proceeds from common shares will also support general corporate purposes.

The charity flow-through shares will fund exploration of the company's Manitoba properties, primarily the Falcon West Cesium Property. These expenditures will qualify as flow-through mining expenses under Canada's Income Tax Act, with Manitoba purchasers eligible for a 30% provincial mineral exploration tax credit. Grid Metals will renounce the qualifying expenditures to flow-through share subscribers effective December 31, 2025.

A company insider participated in the offering, acquiring 5.57 million common shares for approximately C$667,828. This constituted a related party transaction under securities regulations, though the company qualified for exemptions since the transaction represented less than 25% of its market capitalization.

The offering includes no warrants or finder's fees. Final approval from the TSX Venture Exchange remains pending. All shares issued carry a four-month hold period under securities laws.

Grid Metals operates four exploration projects in southeastern Manitoba's Bird River area, focusing on nickel, copper, platinum group metals, lithium and cesium deposits.

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