Nexcel closes $3.55 million private placement financing

Nexcel Metals Corp. (CSE: NEXX) (OTCQB: NXXCF) (FSE: 2OH) completed a non-brokered private placement raising $3,549,800 in gross proceeds, the company announced.

The financing consisted of 1,190,000 flow-through units priced at $0.42 each for $499,800 and 8,714,285 non-flow-through units at $0.35 each for $3,050,000. Each flow-through unit includes one share and one warrant exercisable at $0.50 until December 4, 2027. Each non-flow-through unit includes one share and one warrant exercisable at $0.45 until the same date.

The offering required shareholder approval under Canadian Securities Exchange Policy 4 because it resulted in issuing more than 100% of the company's current outstanding shares. Shareholders holding more than 50% of outstanding shares provided written consent for the transaction.

Nexcel paid $230,276 in cash and issued 641,272 finder's warrants as fees related to the placement. The finder's warrants have varying exercise prices between $0.35 and $0.50 and expire December 4, 2027.

The company plans to use flow-through proceeds for Canadian exploration expenses on its Lac Ducharme Property in Quebec and Burnt Hill Property in New Brunswick. Non-flow-through proceeds will fund additional exploration work, general administrative expenses and working capital.

The board also approved adopting a 20% rolling restricted share unit plan, which requires approval from disinterested shareholders at the next annual meeting. This supplements the existing 10% rolling stock option plan.

All securities issued carry a hold period until April 5, 2026. Vancouver-based Nexcel focuses on mineral property acquisition, exploration and development, according to the company's statement.

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