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VANCOUVER, BC, April 25,
2024 /CNW/ - Vortex Metals Inc. (TSXV:
VMS) (FSE: DM8) (OTCQB: VMSSF) ("Vortex Metals" or the
"Company") is pleased to announce that, further to its news
releases dated April 11, 2024 and
April 19, 2024, it has closed its
previously announced non-brokered private placement (the
"Private Placement") of units of the Company (the
"Units") at a price of $0.09
per Unit. Each Unit consists of one common share in the capital of
the Company (a "Share") and one-half of one non-transferable
Share purchase warrant (each whole warrant, a "Warrant").
Each Warrant entitles the holder thereof to purchase one
additional Share (a "Warrant Share") at a price of
$0.135 per Warrant Share for a period
of 24 months from the date of issuance. The total amount of the
Private Placement consists of 19,369,411 Units for aggregate gross
proceeds of $1,743,249.99.
"The response to our recently announced financing has
been overwhelming. To accommodate several strategic investors, we
were pleased to increase the offering and close an oversubscribed
financing", said CEO and President Vikas
Ranjan.
In connection with the closing of the Private Placement, the
Company paid aggregate finder's fees of $24,184.01, representing a cash commission of 8%
of the proceeds raised from subscribers introduced by the finders,
and issued an aggregate of 276,711 compensation warrants (each, a
"Broker Warrant"). Each Broker Warrant entitles the holder
thereof to purchase one Warrant Share at a price of $0.135 per Warrant Share for a period of 24
months from the date of issuance.
All securities issued in connection with the Private Placement
are subject to a statutory hold period of four months plus a day in
accordance with applicable securities legislation ending on
August 26, 2024.
The Company intends to use the net proceeds of the Private
Placement for general working capital and exploration expenses.
In connection with the closing, insiders of the Company
subscribed for a total of 1,570,300 Units, for a subscription price
of $141,327, under the Private
Placement (the "Insider Subscription"). The Insider
Subscription constitutes a "related party transaction" within the
meaning of Multilateral Instrument 61-101 - Protection of
Minority Securityholders in Special Transactions ("MI
61-101"). The Company has relied on the exemptions from the
formal valuation and minority shareholder approval requirements of
MI 61-101 contained in Sections 5.5(a) and 5.7(1)(a), respectively,
in respect of the Insider Subscription as the fair market value of
the Units issued to insiders in connection with the Private
Placement does not exceed 25% of the market capitalization of the
Company, as determined in accordance with MI 61- 101. The Company
did not file a material change report in respect of the related
party transaction at least 21 days before the closing of the
Private Placement, which the Company deems reasonable in the
circumstances in order to complete the Private Placement in an
expeditious manner.
The securities being offered have not been, nor will they be,
registered under the United States
Securities Act of 1933, as amended, and may not be offered
or sold in the United States or
to, or for the account or benefit of, U.S. persons absent
registration or an applicable exemption from the registration
requirements. This news release will not constitute an offer to
sell or the solicitation of an offer to buy nor will there be any
sale of the securities in any State in which such offer,
solicitation or sale would be unlawful.
All references to currency in this news release are to Canadian
currency.
About Vortex Metals Inc.
Vortex Metals Inc. is the parent company of Mexican
subsidiary Empresa Minera Acagold, S.A. de C.V., which is the owner
of a 100% interest in two drill-ready high-potential copper
volcanogenic massive sulfide (VMS) properties (Riqueza Marina and Zaachila) in the state of Oaxaca, and a third high-potential gold
property (El Rescate) in the state of Puebla. The Oaxaca projects incorporate the most highly
prospective areas of high-grade copper mineralized surface
exposures ('gossans') and prominent gravity anomalies along an
emerging copper VMS belt that includes Minaurum Gold's (TSXV:MGG)
Santa Marta project.
Forward-Looking Statements
This press release may contain forward looking statements
that are made as of the date hereof and are based on current
expectations, forecasts and assumptions which involve risks and
uncertainties associated with our business including permitting
approvals, any private placement financings, the uncertainty as to
whether further exploration will result in the target(s) being
delineated as a mineral resource, capital expenditures, operating
costs, mineral resources, recovery rates, grades and prices,
estimated goals, expansion and growth of the business and
operations, plans and references to the Company's future successes
with its business and the economic environment in which the
business operates. All such statements are made pursuant to the
'safe harbour' provisions of, and are intended to be
forward-looking statements under, applicable Canadian securities
legislation. Any statements contained herein that are statements of
historical facts may be deemed to be forward-looking statements. By
their nature, forward-looking statements require us to make
assumptions and are subject to inherent risks and uncertainties. We
caution readers of this news release not to place undue reliance on
our forward-looking statements as a number of factors could cause
actual results or conditions to differ materially from current
expectations. Please refer to the risks set forth in the Company's
most recent annual MD&A and the Company's continuous disclosure
documents that can be found on SEDAR at www.sedar.com. The Company
does not intend, and disclaims any obligation, except as required
by law, to update or revise any forward-looking statements whether
as a result of new information, future events or otherwise.
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
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SOURCE Vortex Metals