Jet Metal Corp. said Jan. 31 that it is raising gross proceeds of up to C$10 million through an offering of up to 33,333,333 subscription receipts priced at 30 cents apiece.
The financing is related to the company's planned merger with Canada Jetlines Ltd.
Mackie Research Capital Corp. is acting as lead agent for the financing, together with Haywood Securities Inc., PI Financial Corp. and Echelon Wealth Partners Inc.
Each subscription receipt will entitle the holder to receive one unit of the company upon the completion of the merger, which is expected to close Feb. 28.
Each unit will consist of 1 common share or 1 variable voting share and 0.5 of a share purchase warrant, with each whole warrant exercisable at 50 cents per common share or variable voting share for 24 months from closing.
Jet Metal also granted the agents a 15% overallotment option, exercisable up to 48 hours from closing, which is slated for Feb. 14.
The company noted that if the merger does not occur within 120 days of the closing of the offering, each subscription receipt will be converted into 1.05 units with an additional 0.05 units added for each 30-day period thereafter.
Canada Jetlines will use the proceeds for general working capital to meet its objectives as an ultra-low-cost airline carrier in Canada.
Jet Metal's mining assets include the Central Mineral Belt uranium property in Newfoundland and Labrador, and the Bootheel uranium property in Wyoming.