Neotech Metals announces private placement of up to $2.6 million

Neotech Metals Corp. (CSE: NTMC) (OTCQB: NTMFF) (FSE: V690) announced a non-brokered private placement financing intended to raise up to $2.6 million through the sale of two types of units.

The offering includes up to 2,142,857 non-flow through units priced at $0.28 each for gross proceeds of approximately $600,000, and up to 5,128,205 flow-through units priced at $0.39 each for gross proceeds of up to $2 million.

Each non-flow through unit consists of one common share and one-half of a warrant, while each flow-through unit includes one share and one-half of a warrant. The warrants allow holders to purchase one share at $0.45 for three years from issuance.

The warrants include an acceleration provision that reduces the expiry period to 30 days if the company's share price exceeds $0.60 for 10 consecutive trading days following the offering's closure.

All securities will be subject to a hold period of four months and one day from the issue date. The company may pay finder's fees to qualifying parties in accordance with Canadian Securities Exchange policies.

Neotech stated it will use net proceeds from flow-through units for qualified expenditures on its mineral properties, while proceeds from non-flow through units will fund general working capital purposes.

The Vancouver-based mineral exploration company operates rare-earth element and rare metals projects including the Hecla-Kilmer project, Torrance project, and TREO and Foothills projects in British Columbia.

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