Canadian Palladium Announces $3 Million Private Placement
Summary
Each Warrant shall entitle the holder thereof to acquire one Share at a price of $0.18 for a period of 24 months following the Closing Date.The Company has granted Eight Capital an over-allotment option to purchase up to an additional $1,000,000 of Units and/or FT Shares at their respective offering price, exercisable in whole or in part, at any time on or prior to 48 hours prior to the closing of the Offering. If this option is exercised in full, an additional $1,000,000 will be raised pursuant to the Offering and the aggregate proceeds of the Offering will be approximately $4,000,000.The Company intends to use the net proceeds of the Offering to advance the exploration program on the Companys East Bull palladium property, and for working capital and general corporate purposes.The gross proceeds from the sale of the FT Shares will be used for expenditures which qualify as Canadian exploration expenses (CEE) and flow-through mining expenditures both within the meaning of the Income Tax Act (Canada). The Company will renounce such CEE with an effective date of no later than December 31, 2020.The closing date of the Offering is scheduled to be on or about October 2, 2020, and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals, including the approval of the Canadian Securities Exchange and the applicable securities regulatory authorities.As consideration for its services, Eight Capital will receive a cash commission equal to 7% of the gross proceeds of the Offering. The Company will also issue to Eight Capital compensation warrants in an amount equal to 7% of the number of Units and FT Shares sold pursuant to the Offering. Actual results could differ materially from those currently anticipated due to several factors and risks including various risk factors discussed in the Companys disclosure documents which can be found under the Companys profile on www.sedar.com.This press release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E the Securities Exchange Act of 1934, as amended and such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.