Viridian Metals plans $5M private placement of flow-through units

Viridian Metals Inc. (CSE: VRDN) (OTCQB: VIRMF) announced a non-brokered private placement of up to $5,000,000, consisting of flow-through units (FT Units) priced at $0.80 each and non-flow-through units (HD Units) priced at $0.68 each, according to a company statement.

Each FT Unit includes one flow-through common share and one-half of a warrant exercisable at $1.25 per share for 24 months. Each HD Unit includes one common share and one-half of a warrant exercisable at $1.05 per share for 24 months. Warrant expiry may be accelerated if the volume weighted average trading price of the company's common shares exceeds $1.50, for FT Warrants, or $1.85, for HD Warrants, over any 21 consecutive trading days.

Proceeds from FT Unit sales will fund Canadian exploration expenses qualifying as flow-through critical mineral mining expenditures at the company's Kraken and Sedna projects in Labrador. The company will renounce such expenditures to FT Unit subscribers with an effective date no later than December 31, 2026. Net proceeds from HD Unit sales are intended for general corporate and working capital purposes.

Tyrell Sutherland, President and CEO, said the financing is intended to fund drilling needed to support a maiden mineral resource estimate in 2027. The company also said it intends to evaluate whether a Preliminary Economic Assessment could be advanced alongside the maiden resource estimate.

The company may increase the size of the placement subject to acceptance by the Canadian Securities Exchange. All securities issued will be subject to a statutory hold period of four months and one day from issuance. The placement may close in one or more tranches, and finder's fees may be paid in cash and securities.

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