Lomiko Metals Inc. (TSX.V: LMR) (“Lomiko Metals” or the
“Company”) is pleased to announce that it will apply to the TSX
Venture Exchange to close a first tranche of its previously
announced private placement pursuant to which it will issue
13,366,666 units (each a "Unit") at $0.03 per Unit for gross
proceeds of $401,000. Each unit consists of one (1) common share
and one common share purchase warrant (each a "Hard
Warrant"). Each Hard Warrant entitles the holder to acquire one
(1) common share at a price of $0.05 for a period of 60 months. In
addition, the Company secured a grant of approximately $500,000
from federal and provincial agencies to continue advancing
pre-feasibility level battery trials with its La Loutre natural
flake graphite concentrate. Lomiko will provide further detail on
this grant in the coming weeks.
The Units will be subject to a four-month “hold period”
commencing on the closing date pursuant to National Instrument
45-102 – Resale of Securities and Regulation 45-102 respecting
Resale of Securities (Québec) and the certificates or DRS advice
representing such securities will bear a legend to that effect. The
Offering remains subject to the final approval of the TSX Venture
Exchange.
On closing and subject to TSX Venture Exchange approval, the
Company anticipates paying finders' fees totalling $2,550, issuing
416,667 common shares and 85,000 warrants exercisable for five
years at $0.05.
Private Placement Use of Proceeds
The net proceeds from the sale of the Units will be used by the
Company for general corporate and working capital purposes. It
should be noted that the pre-feasibility metallurgical test work
achieved excellent results and demonstrated that an optimized
flotation plant flow sheet can achieve 94.7% graphite recovery and
average 98.7% graphitic carbon purity at the La Loutre natural
flake graphite project. Therefore, the Company will use part of the
proceeds to continue metallurgical testing, value-added testing,
and battery trials and has initiated discussions with battery
manufacturers and OEMs (Original Equipment Manufacturers).
The Company confirms there is no material fact or material
change related to the Company which has yet to be generally
disclosed.
Flow-Through Unit Revised Pricing and Upsize
The Company is also announcing an upsize and pricing revision
for the previously announced Flow-Through offering. Under the
revised Flow-Through offering, the Company may issue up to
17,700,000 flow-through units (the “FT Units“) at a price of
$0.03 per FT Unit for a total of $531,000. Each FT Unit consists of
one common share that will qualify as a “flow-through share” within
the meaning of the Income Tax Act (Canada) and one common share
purchase warrant (a “FT Warrant“), with each whole Warrant
being exercisable at a price of $0.06 per share for a period of two
years following the closing.
The Company intends to use the gross proceeds of the
Flow-Through Offering to incur Canadian Exploration Expenses and
“flow-through critical mineral mining expenditures” as defined in
the Income Tax Act (Canada) on the Company’s recently acquired
Carmin Graphite project, Laurentides regional graphite exploration
program and the Bourier Lithium property exploration program, which
will be incurred on or before December 31, 2024, and renounced with
an effective date no later than December 31, 2023, to the initial
purchasers of FT Units in an aggregate amount not less than the
gross proceeds from the sale of the FT Units. For subscribers that
are residents of Québec at all relevant times, the expenses shall
be i) expenses which qualify for inclusion in the “exploration base
relating to certain Québec exploration expenses” within the meaning
of section 726.4.10 of the Taxation Act (Québec); and ii) expenses
qualifying for inclusion in the “exploration base relating to
certain Québec surface mining expenses or oil and gas exploration
expenses” within the meaning of section 726.4.17.2 of the Taxation
Act (Québec);
Finder fees and commissions may be paid in accordance with the
TSX Venture Exchange policies.
Pursuant to applicable Canadian securities laws, all securities
issued under this private placement are subject to a hold period of
four months and one day. The private placement remains subject to
the final approval of the TSX Venture Exchange.
Closing is subject to several prescribed conditions, including,
without limitations, approval of the TSX Venture Exchange. All the
securities issued under the Offering are subject to resale
restrictions under applicable securities legislation.
About Lomiko Metals Inc.
The Company holds mineral interests in its La Loutre graphite
development in southern Quebec. The La Loutre project site is
within the Kitigan Zibi Anishinabeg (KZA) First Nation’s territory.
The KZA First Nation is part of the Algonquin Nation, and the KZA
traditional territory is situated within the Outaouais and
Laurentides regions. Located 180 kilometers northwest of Montreal,
the property consists of one large, continuous block with 76
mineral claims totaling 4,528 hectares (45.3 km2).
The Property is underlain by rocks from the Grenville Province
of the Precambrian Canadian Shield. The Grenville was formed under
conditions that were very favorable for the development of
coarse-grained, flake-type graphite mineralization from
organic-rich material during high-temperature metamorphism.
Lomiko Metals published April 13, 2023 Updated Mineral Resource
Estimate (MRE) which estimated 64.7 million tonnes of Indicated
Mineral Resources averaging 4.59% Cg per tonne for 3.0 million
tonnes of graphite, a tonnage increase of 184%. Indicated Mineral
Resources increased by 41.5 million tonnes as a result of the 2022
drilling campaign, from 17.5 million tonnes in 2021 MRE with
additional Mineral resources reported down-dip and within marble
units resulted in the addition of 17.5 million tonnes of Inferred
Mineral Resources averaging 3.51% Cg per tonne for 0.65 million
tonnes of contained graphite; and the additional 13,107 metres of
infill drilling in 79 holes completed in 2022 combined with the
refinement of the deposit and structural models contributed to the
addition of most of the Inferred Mineral Resources to the Indicated
Mineral Resource category, relative to the 2021 Mineral Resource
Estimate. The MRE assumes a US$1,098.07 per tonne graphite price
and a cut-off grade of 1.50%Cg (graphitic carbon).
In addition to La Loutre, Lomiko is working with Critical
Elements Lithium Corporation towards earning its 49% stake in the
Bourier Project as per the option agreement announced on April
27th, 2021. The Bourier project site is located near Nemaska
Lithium and Critical Elements south-east of the Eeyou Istchee James
Bay territory in Quebec which consists of 203 claims, for a total
ground position of 10,252.20 hectares (102.52 km2), in Canada’s
lithium triangle near the James Bay region of Quebec that has
historically housed lithium deposits and mineralization trends.
On behalf of the Board, Belinda Labatte CEO and Director, Lomiko
Metals Inc.
For more information on Lomiko Metals, review the website at
www.lomiko.com
Cautionary Note Regarding Forward-Looking Information
This news release contains "forward-looking information" within
the meaning of the applicable Canadian securities legislation that
is based on expectations, estimates, projections and
interpretations as at the date of this news release. The
information in this news release about the Company; and any other
information herein that is not a historical fact may be
"forward-looking information" (“FLI”). All statements, other than
statements of historical fact, are FLI and can be identified by the
use of statements that include words such as "anticipates",
"plans", "continues", "estimates", "expects", "may", "will",
"projects", "predicts", “proposes”, "potential", "target",
"implement", “scheduled”, "intends", "could", "might", "should",
"believe" and similar words or expressions. FLI in this new release
includes, but is not limited to: the Company’s objective to become
a responsible supplier of critical minerals, exploration of the
Company’s projects, including expected costs of exploration and
timing to achieve certain milestones, including timing for
completion of exploration programs; the Company’s ability to
successfully fund, or remain fully funded for the implementation of
its business strategy and for exploration of any of its projects
(including from the capital markets); any anticipated impacts of
COVID-19 on the Company’s business objectives or projects, the
Company's financial position or operations, and the expected timing
of announcements in this regard. FLI involves known and unknown
risks, assumptions and other factors that may cause actual results
or performance to differ materially, and statements relating to the
intended use of proceeds of the Offering and the receipt of final
acceptance of the TSX Venture Exchange. This FLI reflects the
Company’s current views about future events, and while considered
reasonable by the Company at this time, are inherently subject to
significant uncertainties and contingencies. Accordingly, there can
be no certainty that they will accurately reflect actual results.
Assumptions upon which such FLI is based include, without
limitation: current market for critical minerals; current
technological trends; the business relationship between the Company
and its business partners; ability to implement its business
strategy and to fund, explore, advance and develop each of its
projects, including results therefrom and timing thereof; the
ability to operate in a safe and effective manner; uncertainties
related to receiving and maintaining exploration, environmental and
other permits or approvals in Quebec; any unforeseen impacts of
COVID-19; impact of increasing competition in the mineral
exploration business, including the Company’s competitive position
in the industry; general economic conditions, including in relation
to currency controls and interest rate fluctuations.
The FLI contained in this news release are expressly qualified
in their entirety by this cautionary statement, the
“Forward-Looking Statements” section contained in the Company’s
most recent management’s discussion and analysis (MD&A), which
is available on SEDAR at www.sedar.com, and on the investor
presentation on its website. All FLI in this news release are made
as of the date of this news release. There can be no assurance that
such statements will prove to be accurate, as actual results and
future events could differ materially from those anticipated in
such statements. Accordingly, readers should not place undue
reliance on forward-looking information. The Company does not
undertake to update or revise any such forward-looking statements
or forward-looking information contained herein to reflect new
events or circumstances, except as may be required by applicable
securities laws.
Neither the 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 news release.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230714825350/en/
Vincent Osbourne at 647-528-1501 or Belinda Labatte at
647-402-8379 or at 1-833-456-6456 or 1-833-4-LOMIKO or email:
info@lomiko.com.
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