Xmet Inc.
TSX VENTURE : XME

Xmet Inc.

July 24, 2014 09:34 ET

Xmet Announces Closing of Brokered Second Tranche of Private Placement Offering

TORONTO, ONTARIO--(Marketwired - July 24, 2014) - Xmet Inc. ("Xmet" or the "Company") (TSX VENTURE:XME) is pleased to announce that it has completed a brokered second tranche of a private placement offering of units ("Units") of the Corporation (the "Offering"). In connection with the first tranche of the Offering, the Company issued 2,727,273 Units at $0.11 per Unit on April 11, 2014 for aggregate gross proceeds of $300,000. In connection with the current tranche, the Company issued 2,700,000 Units at a price of $0.05 per Unit, for aggregate gross proceeds of $135,000. The Unit price for the current tranche is being sold at a premium to the Company's closing share price on July 22, 2014. Each Unit issued under this current tranche consists of one common share in the capital of the Corporation (each, a "Common Share") and one common share purchase warrant (each, a "Warrant"). Each Warrant is exercisable into one Common Share at a price of $0.05 for a period ending July 23, 2019. The Units and underlying securities will be subject to a four month hold period following closing of the current tranche, expiring on November 24, 2014. To facilitate the financing, the Chairman of the Company, Alexander Stewart loaned 2,700,000 free trading Common Shares to the subscriber under this current tranche and, in return, received a pledge of an equal number of restricted Common Shares acquired by the subscriber pursuant to this current tranche.

Maison Placements Canada Inc. acted as agent and finder in connection with the Offering. In consideration for its services under this current tranche, Maison Placements received a cash commission of $10,800 and compensation options to acquire 216,000 Units at a price of $0.05 per Unit for a period ending July 23, 2016.

The net proceeds of the Offering will be used by Xmet for additional development and exploration work on its Blackflake West graphite project near Hearst, Ontario and for general working capital purposes.

About Xmet's Blackflake Project

Xmet's Blackflake Project comprises over 30,000 acres of 100% owned claims and over 8,000 acres of fifty percent owned or optioned claims located approximately 60km to the northwest of Hearst, Ontario and is adjacent to Zenyatta's Hydrothermal Graphite Deposit. Xmet has now conducted three airborne electromagnetic surveys, VTEM and TDEM, which discovered multiple electromagnetic conductors making the targets highly prospective for further exploration. Xmet has developed an excellent working relationship with the Constance Lake First Nation, with whom the company signed an ongoing Exploration Agreement. Xmet has received all necessary approvals from the Ministry of Northern Development and Mines to conduct ground geophysics on and to drill the 'All Channel' target.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Certain information in this press release may contain forward-looking statements. This information is based on current expectations that are subject to significant risks and uncertainties that are difficult to predict. Actual results might differ materially from results suggested in any forward-looking statements. Xmet assumes no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those reflected in the forward looking-statements unless and until required by securities laws applicable to Xmet. Additional information identifying risks and uncertainties is contained in filings by Xmet with Canadian securities regulators, which filings are available under Xmet's profile at www.sedar.com.

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