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Xmet to raise $1-mln in non-brokered financing deals

Junior mineral explorer Xmet (CVE:XME) plans to raise $1 million through two private financings, and intends to use the funds to fund drilling at its Duquesne-Ottoman property, the company announced Wednesday. 

The first non-brokered financing consists of 3.57 million shares issued on a flow-through basis for a cost of 14 cents per share, for a sum of $500,000.

The second placement consists of 3.84 million shares at a price of 13 cents for a total of up to $500,000.

In addition, the company said it may, at its discretion, increase the flow through offering for a aggregate gross proceeds of up to $1 million.

Proceeds generated by the flow-through offering will be used to fund drilling at the Duquesne-Ottoman property and other projects.

In addition, profits from the non-flow through offering will be used for ongoing business development, operating capital for projects, and for general working capital purposes.

The property consists of 20 claims (commonly referred to as Duquesne West) and 40 claims (commonly referred to as Ottoman) covering an area of 928.6 hectares, located within the townships of Duparquet and Destor in Quebec.

The securities issued have a four month hold period, following the offerings closure.

The offering is slated to close on November 30 and is subject to customary closing conditions and regulatory approval.