August 30, 2022
August 30, 2022 – Vancouver, British Columbia – Graphite One Inc. (GPH: TSX-V; GPHOF: OTCQX) (“Graphite One” or the “Company”) is pleased to announce that it has closed the first tranche of the previously announced non-brokered private placement dated August 8, 2022 raising gross proceeds of $10,076,382 through the issuance of 8,762,071 units at a price of $1.15 per unit (“Tranche One Financing”). Each unit consists of one common share and one common share purchase warrant (a “Warrant”), with each Warrant entitling the holder to acquire, on payment of $1.50 to the Company, one common share of the Company for a period of 24 months from the closing date of the Tranche One Financing, which is subject to an acceleration provision.
The Company paid cash finders’ fees of $316,758 and issued 316,758 compensation warrants (“Compensation Warrant”) on the Tranche One Financing. Each Compensation Warrant entitles the holder to purchase one common share of the Company for a period of 24 months from the closing date of the Tranche One Financing at an exercise price of C$1.50.
The Company intends to use the net proceeds from the Tranche One Financing to support the upcoming feasibility study, including the completion of the summer drilling program, for business development activities and general working capital. Completion of the Tranche One Financing is subject to receipt of final applicable regulatory approvals including final approval of the TSX Venture Exchange. All securities issued in connection with the Tranche One Financing will be subject to a four month hold period ending December 30, 2022.