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UNITED STATES.
TORONTO, Oct. 27,
2023 /CNW/ - LAURION Mineral Exploration Inc.
(TSXV: LME) and (OTCPINK: LMEFF) ("LAURION" or the
"Corporation") today announced that it is proposing to
complete a flow-through private placement on a non-brokered basis
(the "Private Placement"). The Corporation intends to raise
up to approximately $2.7 million in
gross proceeds by issuing up to approximately 4,821,429
flow-through shares (the "FT Shares") at a price of
$0.56 per FT Share.
Each FT Share will be a common share of the Corporation issued
as a "flow-through share" (as defined in subsection 66(15) of the
Income Tax Act (Canada)
(the "Tax Act")). The gross proceeds will be used for
"Canadian exploration expenses" (within the meaning of the Tax
Act), which will qualify, once renounced, as "flow-through mining
expenditures", as defined in the Tax Act, which will be renounced
with an effective date of no later than December 31, 2023 (provided the subscriber deals
at arm's length with the Corporation at all relevant times) to the
initial purchasers of FT Shares in an aggregate amount not less
than the gross proceeds raised from the issue of the FT
Shares.
In line with LAURION's considered, strategic approach to raising
capital over the years, the Corporation is pursuing the Private
Placement in order to raise additional capital to support the
continued advancement of its flagship Ishkoday gold and
polymetallic project (the "Ishkoday Project"). Having regard
for the interests of its stakeholders, the Corporation believes
that it is incumbent upon it to welcome and benefit from these
types of capital raising opportunities when they arise,
particularly in light of the fact that these opportunities are not
always available for many junior mining companies and all of the
proceeds from the Private Placement will be strictly used to
advance the Ishkoday Project. The decision to pursue this financing
was made by the Corporation's Board of Directors with the aim of
enhancing shareholder value and LAURION's position as a potential
acquisition target by supporting the Corporation's ongoing efforts
to expand and develop the Ishkoday Project while maintaining a
significant amount of cash on
hand.
LAURION continues to be an aspiring trailblazer within the
junior mining sector due to its shareholder-centric approach, its
proactive-exploration strategy, its ESG initiatives, its good First
Nations relationships, and its relatively strong balance sheet and
cash-flow generation. LAURION's shareholders can find comfort in
the Corporation's relatively strong cash position and its
money-management strengths. LAURION is continuing to position and
broadcast itself as a well-funded potential acquisition target that
is continuing its efforts to advance the Ishkoday Project. Many
junior mining companies do not adequately anticipate financial and
capital market swings, thus often failing their shareholders in
terms of minimizing the cost of capital. LAURION attempts to
optimize high interest rate periods by investing its available cash
until it is needed. This investment and cash-management strategy is
expected to generate approximately $350,000 in additional cash for the Corporation
in 2023. This expected $350,000 in
cash from interest earned is expected to cover a significant
portion of the Ishkoday Project operational costs in 2023. Astute
and sophisticated investors recognize that 'smart money'
institutional and prospective acquirors seek out prudent junior
mining companies not only due to their long-term mining project
potential, but also those well-managed companies that are
non-distressed since they have reasonably sufficient capital and
cash resources and proven money-management strengths.
As at the date hereof, the Corporation has accepted subscription
agreements for the Private Placement in aggregate gross proceeds of
approximately $2.5 million.
In connection with the Private Placement, the Corporation may
pay finders' fees in the form of cash commissions and the issuance
of common shares in the capital of the Corporation.
The closing of the Private Placement, as well as the payment of
finders' fees in connection therewith, are subject to the final
approval of the TSX Venture Exchange (the "TSXV"). The
Corporation intends to close the Private Placement on or about
October 31, 2023, subject to receipt
of all necessary regulatory approvals. All securities issued
pursuant to the Private Placement will be subject to, among other
things, a hold period of four months and one day in accordance with
applicable Canadian securities laws.
About LAURION Mineral
Exploration Inc.
The Corporation is a junior mineral exploration and development
company listed on the TSX Venture Exchange under the symbol LME and
on the OTC under the symbol LMEFF. LAURION now has 258,091,594
outstanding shares of which approximately 80% are owned and
controlled by Insiders who are eligible investors under the
"Friends and Family" categories.
LAURION's emphasis is on the exploration and development of its
flagship project, the 100% owned mid-stage 57 km2
Ishkoday Project, and its gold-rich polymetallic
mineralization.
LAURION's chief priority remains maximizing shareholder
value while simultaneously embracing and considering the principles
and best practices of environmental, social, and corporate
governance (ESG) issues. A large portion of the Corporation's focus
in this regard falls within the ambit of its mineral exploration
activities and more specifically, advancing the Ishkoday
Project.
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Caution Regarding Forward-Looking
Information
This press release contains forward-looking statements, which
reflect the Corporation's current expectations regarding future
events, including with respect to LAURION's business, operations
and condition, management's objectives, strategies, beliefs and
intentions, the completion of the Private Placement, the
anticipated timing of closing and size of the Private Placement,
the use of proceeds from the Private Placement, the finders' fees
that may be paid by the Corporation in connection with the Private
Placement, the Corporation's ability to advance, expand and/or
develop the Ishkoday Project, and the Corporation's ability to
complete any potential acquisitions, mergers, financings or other
transactions referenced herein. The forward-looking statements
involve risks and uncertainties. Actual events could differ
materially from those projected herein including as a result of a
change in the trading price of the common shares of the Corporation
and the TSXV not providing its final approval for the Private
Placement (including the payment of finders' fees in connection
therewith). Investors should consult the Corporation's ongoing
quarterly and annual filings, as well as any other additional
documentation comprising the Corporation's public disclosure
record, for additional information on risks and uncertainties
relating to these forward-looking statements. The reader is
cautioned not to rely on these forward-looking statements. Subject
to applicable law, the Corporation disclaims any obligation to
update these forward-looking statements.
NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICE
PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX
VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR
ACCURACY OF THE CONTENT OF THIS NEWS RELEASE.
SOURCE Laurion Mineral Exploration Inc.