Global Battery Increases Private Placement for Proceeds of up to $1,050,000
October 26, 2020
Vancouver, British Columbia--(October 26, 2020) – GLOBAL BATTERY METALS LTD. (TSXV: GBML) (OTCQB: REZZF) (Frankfurt: REZ) (the "Company" or "GBML") is pleased to announce that due to the high level of interest, it has increased the size of its non-brokered private placement, as originally announced on October 21, 2020, (the "Offering") to now raise aggregate gross proceeds of $1,050,000 through the sale of 10,500,000 units ("Units") at a price of $0.10 per Unit. Each Unit shall be comprised of one common share and one common share purchase warrant (a "Warrant"). Each Warrant shall entitle the holder thereof to acquire one common share at a price of $0.15 until the date that is twenty-four (24) months following the closing date of the Offering. The closing of the Offering is anticipated to occur on or before November 5, 2020.
Any securities to be issued in connection with the Offering will be subject to a hold period of four months and one day from the date of issuance. The Company may pay finder’s fees on a portion of the Offering, subject to compliance with the policies of the TSX Venture Exchange and applicable securities legislation. The Offering remains subject to the approval of the TSX Venture Exchange.
The net proceeds of the offering are expected to be used for project evaluation and general working capital. Certain insiders of the Company may participate in the Offering. The subscription of Units to insiders pursuant to the private placement is considered to be a related party transaction subject to Multilateral Instrument 61-101. The Company intends to rely on exemptions from the formal valuation and minority shareholder approval requirements provided under sections 5.5(a) and 5.7(a) of Multilateral Instrument 61-101 on the basis that participation in the private placement by insiders will not exceed 25% of the fair market value of the Company's market capitalization.
This news release does not constitute an offer to sell or a solicitation of an offer to sell any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.
About GBML Battery Metals Ltd.
GBML is a mineral exploration company with a focus on metals that make up and support the rapid evolution to battery power. GBML's common shares are listed on the TSX Venture Exchange, OTCBB and Frankfurt. GBML currently has two projects: (1) an option to acquire up to 90 per cent of the North-West Leinster lithium property in Ireland, and (2) a 55-per-cent stake in Perubased Lara copper property, which has over 10,000 metres of drilling. As previously disclosed, Minsur S.A., a Peruvian mining company, entered into an option agreement with GBML and Lara Exploration Ltd. to acquire the Lara property for staged payments of $5.75 million (U.S.). GBML will retain a 0.75-per-cent net smelter royalty. Please see the press release of July 28, 2020, for more information.
Michael Murphy BA, MBA, MSc., ICD
President & CEO
This press release contains forward-looking information within the meaning of the applicable Canadian securities legislation. Forward-looking information in this press release includes, but is not limited to, statements about the Offering generally, the anticipated closing and successful completion of the Offering, the use of proceeds received therefrom, receipt of applicable regulatory approvals including the conditional approval of the TSX-V, and the Company’s assets. These statements are based on information currently available to the Company and the Company provides no assurance that actual results will meet management’s expectations. In certain cases, forward-looking information may be identified by such terms as “anticipates”, “believes”, “could”, “estimates”, “expects”, “may”, “shall”, “will”, or “would”. These forward-looking statements are subject to numerous risks and uncertainties, certain of which are beyond the control of the Company, including, but not limited to, impacts arising from the global disruption caused by the Covid-19 coronavirus outbreak, fluctuations in general macroeconomic conditions; receipt of applicable regulatory approvals including TSX-V conditional approval of the Offering, availability of financing, the potential for gold and/or lithium at any of the Company’s properties, the prospective nature of any claims comprising the Company’s property interests, the impact of general economic conditions, industry conditions, dependence upon regulatory approvals, uncertainty of sample results, timing and results of future exploration, and the availability of financing. Please refer to the Company’s MD&A for the year ended April 30, 2020 and other disclosure documents filed under its profile on SEDAR for other risks that could materially affect the Company. These and other factors should be considered carefully, and readers should not place undue reliance on the Company’s forward-looking information. The Company does not undertake to update any forward-looking information that may be made from time to time by the Company or on its behalf, except in accordance with applicable securities laws. Neither the TSX-V nor its Regulation Services Provider (as that term is defined in the policies of the TSX-V) accepts responsibility for the adequacy of this release. No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.
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