Lomiko Metals Inc. Closes Financings for Gross Proceeds of $5,520,800
March 13 2014 - 9:07AM
Marketwired
Lomiko Metals Inc. Closes Financings for Gross Proceeds of
$5,520,800
VANCOUVER, BRITISH COLUMBIA and TORONTO, ONTARIO--(Marketwired -
Mar 13, 2014) - LOMIKO METALS INC. (TSX-VENTURE:LMR) (the "Company"
or "Lomiko") is pleased to announce that it has successfully
completed its previously announced public offering (the "Public
Offering") in connection with the short form prospectus of the
Company dated March 6, 2014 (the "Prospectus").
Under the Public Offering, 26,584,180 units of the Company (the
"Units") were sold at a price of $ 0.11 per Unit and 4,627,000
units of the Company (the "Flow-Through Units") were sold at a
price of $0.13 per Flow-Through Unit.
Each Unit consists of one common share of the Company (each, a
"Common Share") and one-half of one common share purchase warrant
(each whole warrant being a "Unit Warrant"). Each Flow-Through Unit
consists of one Common Share to be issued on a "flow-through" basis
within the meaning of the Income Tax Act (Canada) (each a
"Flow-Through Share") and one-half of one common share purchase
warrant (each whole warrant being a "Flow-Through Unit
Warrant").
Each Unit Warrant entitles the holder thereof to purchase one
common share of the Company (the "Unit Warrant Shares") at a price
of $0.15 per Unit Warrant Share at at any time before the date that
is 18 months following the closing date of the Public Offering.
Each Flow-Through Unit Warrant entitles the holder thereof to
purchase one common share of the Company (the "Flow-Through Unit
Warrant Shares") at a price of $0.20 per Flow-Through Unit Warrant
Share at at any time before the date that is 18 months following
the closing date of the Public Offering.
In consideration for services rendered in connection with the
Public Offering, the Company has paid a cash commission equal to 8%
of the gross proceeds received from the sale of the Units and the
Flow-Through Units and the Company granted 1,872,671 compensation
options, with each compensation option being exercisable to
purchase one common share of the Company for a period of 18 months
following the closing date of the Public Offering, at a price of
$0.11 per common share. Total commission and fees related to the
Units and the Flow-Through Units under the Prospectus were
$381,780.83.
An overallotment provision granted under the Prospectus was not
utilized and is now extinguished.
The Company is also pleased to announce the closing of its
previously announced concurrent non-brokered offering by issuing
15,346,231 flow-through units (the "Private Placement Units") for
additional gross proceeds of $1,995,010.03 (the "Private
Placement"). The securities underlying the Private Placement Units
were issued on the same terms as the securities underlying the
Flow-Through Units that were issued under the Public Offering. In
connection with the Private Placement, the Company paid a finder's
fee of 8% in cash and issued 920,774 compensation options, with
each compensation option being exercisable to purchase one common
share of the Company for a period of 18 months following the
closing date of the Private Placement, at a price of $0.13 per
common share. Total commission and fees related to Private
Placement Units were $194,600.80.
The net proceeds from the Public Offering of $3,143,988.97 and
the Private Placement of $1,800,409.23 will be used by Lomiko
primarily in connection with the exploration program on the
Quatre-Milles East and West mineral properties (Quebec), for
business development and for working capital and general corporate
purposes. In particular, the proceeds of the flow-through shares
under the Public Offering and the Private Placement will be used by
the Company to incur eligible Canadian Exploration Expenses as
defined by the Income Tax Act (Canada).
The Units, the Flow-Through Units and the Private Placement
Units have not been, nor will they be, registered under the United
States Securities Act of 1933, as amended (the "1933 Act"), and may
not be offered, sold or delivered, directly or indirectly, within
the United States, or to or for the account or benefit of U.S.
persons unless the Units, the Flow-Through Units and the Private
Placement Units are registered under the 1933 Act or pursuant to an
applicable exemption from the registration requirements of the 1933
Act. This press release does not constitute an offer to sell, nor
it is a solicitation of an offer of securities, nor shall there be
any sale of securities in any state of the United States in which
such offer, solicitation or sale would be unlawful.
On Behalf of the Board OF LOMIKO METALS INC.
A. Paul Gill, CEO & Director, Lomiko Metals Inc.
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of
this release.
Lomiko Metals Inc.(778) 228-1170(604)
583-1932info@lomiko.comwww.lomiko.com
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