|By Marketwired .||
|April 11, 2014 03:20 PM EDT||
TORONTO, ONTARIO -- (Marketwired) -- 04/11/14 -- Xmet Inc. ("Xmet" or the "Company") (TSX VENTURE: XME) is pleased to announce that it has completed all of the ground geophysics work on its 100% owned Blackflake project and is in the midst of its initial diamond drill program. The ground geophysics program was designed to give the company a higher definition of the sub soil structures and to assist in spotting the initial drill holes on the first target. As announced in our March 28th 2014 news release, the company has engaged Asinii Drilling to complete approximately 1,500 metres of diamond drilling to test the first target that the Company has discovered to date. The Company expects this initial drill campaign to take approximately two to three weeks depending on the density of the bedrock.
Xmet also announces that it has completed a non-brokered private placement of $300,000 with an institutional investor. The funds will be used to continue the advancement of the Company's Blackflake Project and for working capital. Xmet has issued 2,727,273 units to the investor at a price of $.011 per unit, with each unit consisting of one common share of Xmet and one common share purchase warrant. Each warrant entitles the holder thereof to acquire one common share of Xmet at a price of $0.175 at any time until October 11, 2015. Xmet paid a cash finder's fee equal to 8% of the gross proceeds raised and issued 218,182 compensation options totalling 8% of the units issued. Each compensation option entitles the holder to acquire one common share of Xmet at a price of 11 cents at any time until October 11, 2015. The securities issued in the private placement are subject to a statutory four month hold period expiring on August 11, 2014. To make possible the financing, certain directors of Xmet loaned 2,727,273 free trading shares to the investor and received in return a pledge of an equal number of restricted shares.
The Company also announces the resignation of Stephen Dulmage from its Board of Directors. Xmet would like to thank Mr. Dulmage for his contributions to the company during his tenure.
About Xmet's Blackflake Project
Xmet's Blackflake Project comprises over 29,000 acres of 100% owned claims approximately 60km to the northwest of Hearst, Ontario and is adjacent to Zenyatta's Albany Project. Xmet has conducted three airborne electromagnetic surveys, VTEM and TDEM, and ground geophysics 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 permits from Ontario's Ministry of Northern Development and Mines.
Neither 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.