Forum Energy Metals Announces Closing of Brokered Private Placement for Proceeds of C$10.4 Million

12 December 2023

Vancouver, B.C., December 12, 2023 – Forum Energy Metals Corp. (TSX.V: FMC, OTCQB: FDCFF) (“Forum” or the “Company”) is pleased to announce the closing of its previously announced “best efforts” private placement (the “Offering”) for gross proceeds of C$10,364,014, which includes the full exercise of the Agents’ Option for gross proceeds of C$1,500,000. Under the Offering, the Company sold the following:

  • 48,648,648 flow-through units of the Company to purchasers (each, a “FT Unit”) at a price of C$0.185 per FT Unit for gross proceeds of C$9,000,000 from the sale of FT Units; and
  • 11,366,787 units of the Company (each, a “Unit”, and together with the FT Units, the “Offered Securities”) at a price of C$0.12 per Unit for gross proceeds of C$1,364,014 from the sale of Units.

Under the Offering, Red Cloud Securities Inc. acted as lead agent and sole bookrunner on behalf of a syndicate of agents that included Stifel Nicolaus Canada Inc. (collectively, the “Agents”).

Each FT Unit consists of one common share of the Company (each, a “FT Share”) and one-half of one common share purchase warrant (each whole warrant, a “Warrant”). The FT Shares and Warrants comprising the FT Units will qualify as “flow-through shares” within the meaning of the Income Tax Act (Canada). Each Unit consists of one common share of the Company (each, a “Unit Share”) and one-half of one Warrant. Each whole Warrant shall entitle the holder to purchase one common share of the Company (each, a “Warrant Share”) at a price of C$0.185 at any time on or before December 12, 2025.

The Company intends to use the proceeds raised from the Offering for exploration of its Thelon Basin uranium project in Nunavut and for general working capital purposes. Proceeds from the sale of FT Units will be used to incur "Canadian exploration expenses" as defined in subsection 66.1(6) of the Income Tax Act and "flow through critical mineral mining expenditures" as defined in subsection 127(9) of the Income Tax Act. Such proceeds will be renounced to the subscribers with an effective date not later than December 31, 2023, in the aggregate amount of not less than the total amount of gross proceeds raised from the issue of FT Units.

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