Grid Metals Corp (GRDM)

[ThSeeker]

December 14, 2020 / Grid Metals Corp. (the "Company") (TSXV:GRDM) is pleased to announce a non-brokered private placement of securities of the Company to raise gross proceeds of up to C$2,250,000 (the "Offering"). The Offering will be comprised of any combination of the following:

Non flow-through units of the Company (the "Units") to be sold at a price of C$0.15 per Unit;
Flow-through units of the Company (the "FT Units") to be sold at a price of C$0.17 per FT Unit; and
Charitable flow-through units of the Company (the "Charity FT Units") to be sold at a price of C$0.21 per Charity FT Unit.

Each Unit will be comprised of one common share of the Company (each, a "Common Share") and one half of one common share purchase warrant (a "Warrant"). Each Warrant will entitle the holder thereof to acquire one Common Share at a price of C$0.22 for a period of 24 months from the closing date of the Offering. Each FT Unit and Charity FT Unit will be comprised of one common share of the Company to be issued as "flow-through shares" within the meaning of the Income Tax Act (Canada) (each, a "FT Share") and one half of one Warrant. The exact number of Units, FT Units and Charity FT Units sold will be determined at the closing of the Offering. Red Cloud Securities Inc. will be acting as a finder in connection with the Offering.

The Company may elect to increase the size of the Offering by selling additional Units, FT Units or Charity FT Units at the offering prices for additional gross proceeds of up to C$500,000.

The net proceeds from the Units will be used for exploration of the Company's East Bull Lake property and general working capital purposes. Proceeds from the sale of FT Shares will be used to incur "Canadian exploration expenses" as defined in subsection 66.1(6) of the Income Tax Act and "flow through mining expenditures" as defined in subsection 127(9) of the Income Tax Act ("Qualifying Expenditures"). Such proceeds will be renounced to the subscribers with an effective date not later than December 31, 2020, in the aggregate amount of not less than the total amount of gross proceeds raised from the issue of FT Shares.

The closing of the Offering is expected to occur on or about December 24, 2020 and is subject to receipt of all necessary regulatory approvals. The Common Shares, FT Shares, and any Common Shares issuable upon the exercise of the Warrants and finder's warrants issued with respect to the Offering will be subject to a hold period of four months and one day in accordance with applicable securities laws.

This news release does not constitute an offer of securities for sale in the United States. The securities being offered have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, and such securities may not be offered or sold within the United States absent U.S. registration or an applicable exemption from U.S. registration requirements.