E-Tech Resources Inc. has announced plans to raise up to US$950,000 (about N$17.5 million) through a private placement of 19 million shares at US$0.05 per share.
The funds will be used to advance exploration at the company’s Eureka Project in Namibia, as well as for working capital and general corporate purposes.
“This financing is an important step as we continue to advance our Eureka Project in Namibia, and it reflects our focus on unlocking long-term value while strengthening our financial position,” said Chris Drysdale, CEO of E-Tech Resources Inc.
To support the placement, E-Tech has engaged Numus Capital Corp., a registered Exempt Market Dealer, to act as agent.
The company has agreed to pay Numus a cash fee of 7 percent of proceeds raised by the agent, excluding subscriptions from directors, officers, employees, and their affiliates.
“The engagement of Numus Capital ensures that we have the right support to effectively execute this financing, and we are confident this arrangement balances shareholder interests with the company’s growth plans,” Drysdale said.
As part of the agreement, compensation warrants will be issued to Numus equal to 7 percent of shares sold to investors introduced by the agent. Each warrant will be exercisable at US$0.05 per share for 24 months from closing, subject to the same exemptions for company insiders and affiliates.
“Our approach is to remain fully compliant while moving quickly to secure the funding needed to advance the Eureka Project, and we are committed to completing this process efficiently,” Drysdale said.
Completion of the financing remains subject to approval by the TSX Venture Exchange and other standard conditions. All securities issued will carry a hold period of four months and one day, in line with exchange requirements.
E-Tech is a rare earth exploration and development company focused on its Eureka Rare Earths Project in Namibia, located about 250 kilometres northwest of Windhoek and 140 kilometres east of Walvis Bay, near the national B1 highway in the Erongo Region.
The deposit lies in the Southern Central Zone of the Neoproterozoic Damara Belt under EPL 6762, covering farms Eureka 99 and Sukses 90.
The company has also signed a definitive agreement to acquire an 85 percent interest in the adjacent EPL 8748, which surrounds its existing licence area.
