FIREWEED METALS CORP. (“Fireweed” or the “Company”) (TSXV: FWZ;
OTCQB: FWEDF, formerly known as Fireweed Zinc Ltd.) is pleased to
announce a non-brokered private placement (the
“
Offering”) for gross proceeds of up to
CAD$27,523,500. The private placement includes lead orders by
members of the Lundin family (“Lundins”) and other key
shareholders.
Highlights
- The Lundins’ participation in the Offering makes them
collectively Fireweed’s largest shareholder
- Additional orders from other key shareholders in excess of
$5M
- The Offering will provide Fireweed with capital to make 2023
the most significant program ever completed on the Company’s
projects
CEO & Investor Statements
Brandon Macdonald, CEO, stated “It is a testament to the quality
of Fireweed’s projects and the efforts of our team that we are able
to attract backers like the Lundin family. No strangers to projects
with district potential, the Lundins saw the value in Fireweed’s
portfolio, particularly our flagship Macmillan Pass project, and
have now given us one of our strongest endorsements to date.
Together with additional backing from our largest shareholders this
Offering gives Fireweed the ability to deliver a 2023 program
unconstrained from capital requirements. I am excited for the year
ahead.”
Adam Lundin stated “The Lundin Family is excited to become a
significant shareholder in Fireweed Metals. We have been impressed
with the progress made to date by Brandon and his team. With the
experience we have in the sector, opportunities like this seldomly
come around and we view Fireweed has a district scale opportunity.
The recent discovery at Boundary Zone adds to the solid
mineralization characteristics of the Tom and Jason deposits. We
look forward to working with the company to maximize value for all
stakeholders involved in this exciting story.”
The Offering
The Offering will consist of three parts for gross proceeds of
$27,523,500 as follows:
- 28,275,000 shares (“Shares”) of the Company at a price of
CAD$0.74 per Share;
- 3,000,000 flow-through common shares of the Company at a price
of CAD$0.88 per share (“Flow-Through Shares”); and
- 3,300,000 flow-through common shares of the Company at a price
of CAD$1.20 per share through a charitable donation arrangement
(“Premium Flow-Through Shares”).
The proceeds from the Offering will be used for exploration and
development of the Company’s projects in northern Canada, and for
general working capital purposes. The gross proceeds from the
issuance of all Flow-Through and Premium Flow-Through Shares will
be used on the Company’s Zinc projects to incur Canadian
Exploration Expenses (“CEE”) and will qualify as “flow-through
critical mineral mining expenditures” under the Income Tax Act
(Canada). These expenses will be renounced by the Company to the
purchasers of Flow-Through and Premium Flow-Through Shares with an
effective date no later than December 31, 2022 in an aggregate
amount no less than the proceeds raised from the issue of the
Flow-Through and Premium Flow-Through Shares.
Closing of the Offering is subject to certain customary
conditions, including, but not limited to, the receipt of all
necessary regulatory approvals and acceptance of the TSX Venture
Exchange. All securities issued under the Offering will be subject
to a statutory hold period of four months plus a day following the
date of closing.
About Fireweed Metals Corp. (TSXV: FWZ;
OTCQB: FWEDF; FSE:20F): Fireweed Metals is a public
mineral exploration company on the leading edge of Critical
Minerals project development. The Company has three projects
located in northern Canada:
-
Macmillan Pass Zinc-Lead-Silver Project: Fireweed
owns 100% of the district-scale 940 km2 Macmillan Pass project in
Yukon, Canada, which is host to the Tom and Jason zinc-lead-silver
deposits with current Mineral Resources and a PEA economic study
(see Fireweed news releases dated 10th January 2018, and 23rd May
2018, respectively, and reports filed on www.sedar.com for details)
as well as the Boundary Zone, Boundary Zone West, Tom North Zone
and End Zone which have significant zinc-lead-silver mineralization
drilled but not yet classified as mineral resources. The project
also includes large blocks of adjacent claims with known showings
and significant upside exploration potential. The large 2022 drill
program utilizing four drills is now complete and assay results are
being announced as they are received and interpreted.
- Mactung
Tungsten Project: The Company has a binding Letter of
Intent to acquire 100% interest in the 37.6 km2 Mactung Tungsten
Project located adjacent to the Macmillan Pass Project. Mactung
contains historic resources that make it one of the largest and
highest-grade undeveloped tungsten resources in the world. Located
in Canada, it is one of the rare large tungsten resources outside
of China. Due diligence and validation work on historic data as
well as relogging and sampling of historic drill core is underway
which should support a new mineral resource estimate.
- Gayna
River Zinc-Lead-Gallium-Germanium Project: Fireweed has
100% of the 128.75 km2 Gayna River project located 180 kilometres
north of the Macmillan Pass project. It is host to extensive
critical minerals mineralization including zinc, gallium and
germanium as well as lead and silver, outlined by 28,000 metres of
historic drilling and significant upside potential. The 2022 field
program of airborne LiDAR topographic surveying and ground
geophysics is now complete and data is being interpreted toward
defining 2023 drill targets.
In Canada, Fireweed (TSXV: FWZ) trades on the
TSX Venture Exchange. In the USA, Fireweed (OTCQB: FWEDF) trades on
the OTCQB Venture Market for early stage and developing U.S. and
international companies and is DTC eligible for enhanced electronic
clearing and settlement. The Company is current in its reporting,
and undergoes an annual verification and management certification
process. Investors can find Real-Time quotes and market information
for the Company on www.otcmarkets.com. In Europe, Fireweed (FSE:
20F) trades on the Frankfurt Stock Exchange.
Technical information in this news release has
been approved by George Gorzynski, P.Eng., Director and a
‘Qualified Person’ as defined under Canadian National Instrument
43-101.
Additional information about Fireweed and its
projects can be found on the Company’s website at
www.FireweedMetals.com and at www.sedar.com.
ON BEHALF OF FIREWEED METALS
CORP.
“Brandon Macdonald”
CEO & Director
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.
This news release does not constitute an offer
to sell or a solicitation of an offer to buy any of the Company’s
securities in the United States. The Company’s shares 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.
Cautionary Statements
Forward Looking Statements
This news release contains “forward-looking” statements and
information (“forward-looking statements”). Forward-looking
statements are frequently, but not always, identified by words such
as "expects”, "anticipates”, "believes”, "intends”, "estimates”,
"potential”, "possible”, and similar expressions, or statements
that events, conditions, or results "will”, "may”, "could”, or
"should” occur or be achieved. Forward-looking statements include,
but are not limited to, statements relating to the Offering, the
potential investors, the use of proceeds and the potential of the
Company’s projects. Forward-looking statements are based on the
beliefs of Company management, as well as assumptions made by and
information currently available to Company management and reflect
the beliefs, opinions, and projections on the date the statements
are made. Forward-looking statements involve various risks and
uncertainties and accordingly, readers are advised not to place
undue reliance on forward-looking statements. There can be no
assurance that such statements will prove to be accurate, and
actual results and future events could differ materially from those
anticipated in such statements. Important factors that could cause
actual results to differ materially from the Company's expectations
include but are not limited to, exploration and development risks,
expenditure and financing requirements, general economic
conditions, changes in financial markets, the ability to properly
and efficiently staff the Company’s operations, the sufficiency of
working capital and funding for continued operations, title
matters, First Nations relations, operating hazards, political and
economic factors, competitive factors, metal prices, relationships
with vendors and strategic partners, governmental regulations and
oversight, permitting, seasonality and weather, technological
change, industry practices, uncertainties involved in the
interpretation of drilling results and geological tests, and
one-time events. There is no assurance that (i) the Company will be
able to complete the Offering on the terms set out above, or at
all, or (ii) that the proceeds of the Offering will be expended as
contemplated. The Company does not undertake to update
forward‐looking statements or forward‐looking information, except
as required by law.
Contact:Brandon MacdonaldPhone: (604) 646-8361
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