Spark closes $375,000 second tranche of placement
VANCOUVER, BC / August 8, 2024 / Spark Energy Minerals Inc., ("Spark" or the "Company" (CSE: EMIN) (OTC: MTEHF) (Frankfurt: 8PC) is pleased to announce it has closed the second tranche of the private placement (the “Private Placement”) previously announced in its press release dated May 27, 2024. The Private Placement was oversubscribed with aggregate subscriptions for 8,709,998 Units representing $653,250 in gross proceeds received by the Company across both tranches.
In the second tranche, the Company accepted subscriptions for 4,999,999 units (each, a “Unit”) at a price of $0.075 per Unit for aggregate gross proceeds of $375,000.04. Each Unit is comprised of one common share in the capital of the Company (each, a “Share”) and one warrant (each, a “Warrant”) to purchase an additional common share (each, a “Warrant” and collectively with the Units, the Shares and the Warrants, the “Securities”). Each Warrant entitles the holder to acquire an additional Share at a price of $0.125 for a period of up to two years from the date of closing. The Company has the option to accelerate the expiry date of the Warrants if the closing price of the Shares on the CSE is at least $0.20 for a period of 10 consecutive trading days.
Securities issued pursuant to the second tranche of the Private Placement are subject to a statutory hold period until December 9, 2024.
The Company did not pay any finder’s fees in connection with this tranche of the Private Placement, and insiders of the Company subscribed for 1,600,000 Units representing 18.36% of the Units issued in both tranches of the Private Placement. The Company has relied on the exemptions from the valuation and minority shareholder approval requirements of MI 61-101 contained in sections 5.5(b) and 5.7(a) of MI 61-101 in respect of such insider participation. The Company intends to use the proceeds from the Private Placement to perform exploration work on its properties, marketing and investor relations, and general working capital.
The Company is also pleased to announce that, further to its news releases of August 15, 2023 and March 6, 2024, it has entered into agreements with Talisman Venture Partners Ltd. (“Talisman”) to extend the due date of an aggregate of $550,000 in cash payments owed to Talisman under agreements to acquire the “CE Property” and the “Tristar Property.” The Company and Talisman have agreed to extend the due date of $150,000 owed to Talisman in respect of the CE Property to July 31, 2025. The Company and Talisman have also agreed to extend the due date of $400,000 owed to Talisman in respect of the Tristar Property to August 7, 2025, provided that the Company pays $50,000 of that amount within 90 days and grants Talisman a 1% net smelter returns royalty on the Tristar Property. The Company has the option, at any time, to repurchase one-half (1/2) of the 1% net smelter returns royalty for $1,000,000.
In addition, the Company is also pleased to announce that it has engaged bullVestor Medien GmbH (“bullVestor”) and its General Manager, Helmut Pollinger, to provide certain strategic planning services to the Company, which services may include investor relations activities within the meaning of applicable securities laws and the policies of the Canadian Securities Exchange. bullVestor has been engaged for strategic planning, procurement, advertising campaigns on financial ad networks and overseeing progress and results to heighten market and brand awareness for Spark and to broaden the Company's reach within the investment community.
The Company has engaged bullVestor to provide services to the Company for an initial term of six months ending on January 31, 2025, in consideration for the Company making a cash payment of $400,000. bullVestor and its principal are at arm’s length to the Company and, to the knowledge of the Company, bullVestor does not own, control, or direct any securities of the Company. (bullVestor Medien GmbH; Address: Gutenhofen 4 - 4300 St. Valentin; Email: kontakt@bullvestor.at; Tel: +43 (0) 7435-44077)
About Spark Energy Minerals Inc.
Spark Energy Minerals, Inc., is a Canadian company pursuing battery metals and mineral assets with newly acquired interests in Brazil. The Company has acquired assets in some of the world's most prolific mining jurisdictions in Brazil's growing lithium areas that are gaining recognition as a world hot spot for lithium and rare earth mineral exploration.
Neither the Canadian Securities Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this release.
FOR ADDITIONAL INFORMATION, SEE THE COMPANY'S WEBSITE AT
https://sparkenergyminerals.com
Email to info@sparkenergyminerals.com
Contact: Eugene Hodgson, CEO, Tel. +1-778-744-0742
Forward-Looking Statement Disclaimer
Certain statements contained in this release may constitute "forward–looking statements" or "forward-looking information" (collectively "forward-looking information") as those terms are used in the Private Securities Litigation Reform Act of 1995 and similar Canadian laws. These statements relate to future events or future performance. The use of any of the words "could," "intend," "expect," "believe," "will," "projected," "estimated", "anticipates" and similar expressions and statements relating to matters that are not historical facts are intended to identify forward-looking information and are based on the Company's current belief or assumptions as to the outcome and timing of such future events. Actual future results may differ materially. In particular, this release contains forward-looking information relating to the business of the Company, the CE Property and the Tristar Property, financing and certain corporate changes. The forward-looking information contained in this release is made as of the date hereof, and the Company is not obligated to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by applicable securities laws. Certain statements contained in this release may constitute "forward–looking statements" or "forward-looking information" (collectively "forward-looking information") as those terms are used in the Private Securities Litigation Reform Act of 1995 and similar Canadian laws. These statements relate to future events or future performance. The use of any of the words "could", "intend", "expect", "believe", "will", "projected", "estimated", "anticipates" and similar expressions and statements relating to matters that are not historical facts are intended to identify forward-looking information and are based on the Company's current belief or assumptions as to the outcome and timing of such future events. Actual future results may differ materially. In particular, this release contains forward-looking information relating to the business of the Company, the RN Property, the Acquirors and certain corporate changes. The forward-looking information contained in this release is made as of the date hereof and the Company is not obligated to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by applicable securities laws.
