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Brixton Metals completes $14.58 million placement with BHP support

EditorRachael Rajan
Published 11/22/2023, 12:04 PM
© Reuters.

Brixton Metals Corporation has successfully finalized its second private placement tranche, bringing the total raised to $14.58 million since the end of October. The latest segment included 16,384,645 Charity FT Units, with BHP Investments Canada Inc., a subsidiary of the global resources company BHP Group (NYSE:BHP) Limited, maintaining its 19.9% ownership stake.

The Charity FT Units consist of one flow-through share (FT Share) and half a Warrant, which permits the holder to purchase additional common shares at $0.23 each until November 22, 2025. This financial mechanism is designed to support Canadian exploration and mining activities, offering tax advantages under the Income Tax Act (Canada).

Investors in these units will be subject to a holding period that extends to March 23, 2024, in accordance with Canadian securities regulations. The initial tranche saw over 64 million combined units sold, including NFT Units and Charity FT Units, with the latter allowing for share purchases at the same price through November 2025.

BHP Investments Canada Inc. secured its Charity FT Units from initial participants to retain its significant ownership fraction. The capital raised is earmarked for qualifying exploration expenses that adhere to Canadian tax rules.

The offering was not registered under U.S securities laws, thus limiting participation to non-U.S persons or those who are legally exempted from such restrictions.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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