/THIS NEWS RELEASE IS NOT FOR DISSEMINATION IN
THE UNITED STATES OR FOR
DISTRIBUTION TO UNITED STATES
NEWSWIRE SERVICES/
(All dollar amounts are in Canadian dollars
unless otherwise indicated)
PERTH, Australia, Dec. 14, 2017 /CNW/ - LeadFX Inc. (the
"Company" or "LeadFX") (TSX: LFX) today
announces that it has entered into a binding term sheet
with Sentient Global Resources Fund IV,
LP ("Sentient") and InCoR Energy Materials Limited
("InCoR") for the issue of up to 2,374,301 units, each unit
being comprised of one (1) common share of the Company ("Common
Share") and one (1) Common Share purchase warrant for each one
(1) Common Share issued (hereinafter, a "Unit").
Subject to TSX approval, the Units shall be issued at
$0.49 per Unit by way of non-brokered
private placement for gross proceeds of approximately $1,163,407 (the "Offering"), in two
separate tranches of approximately 1,187,150 Units each as detailed
below. Each warrant will entitle the holder thereof to purchase one
(1) additional Common Share at a price of $0.61 any time within 60 months of completion of
the Offering.
|
Tranche 1
Units
|
Tranche 2
Units
|
Total
Units
|
|
Common
Shares
|
Warrants
|
Common
Shares
|
Warrants
|
Common
Shares
|
Warrants
|
Sentient
|
576,444
|
576,444
|
576,777
|
576,777
|
1,153,554
|
1,153,554
|
InCoR
|
610,373
|
610,373
|
610,374
|
610,374
|
1,220,747
|
1,220,747
|
Total
|
1,187,150
|
1,187,150
|
1,187,151
|
1,187,151
|
2,374,301
|
2,374,301
|
Proceeds from the Units will be applied toward general corporate
and working capital needs of the Company.
Tranche 1 of the Offering is expected to close on or before
December 20, 2017 and Tranche 2 of
the Offering is expected to close on or before January 12, 2018.
Subscription Agreements for Tranche 1 Units have been executed
by Sentient and InCoR. Completion of Tranche 1 is conditional upon
no order, ruling or decision being issued or granted by a court or
regulatory or administrative authority that has the effect of
precluding or restricting the issuance or trading of the Common
Shares, or that affects any person or company who engages in such a
trade, the receipt of all regulatory approvals including, but not
limited to TSX approval and customary conditions for an offering of
this type. Completion of Tranche 2 is conditional upon the same
conditions as Tranche 1 and negotiating and the execution and
delivery of into definitive legal agreements.
Following completion of the Offering Sentient and InCoR will
hold approximately 80.5% and 6.5% of the issued and outstanding
Common Shares, respectively.
About LeadFX
LeadFX is a Toronto Stock Exchange listed (TSX:
LFX), Australian based, mining company focused on the development
of its lead and lead-silver projects located in Australia and North
America. The Company's primary undertaking is the Paroo
Station lead mine. The Paroo Station lead mine is located 30km west
of the town of Wiluna in Western
Australia (refer Figure 1). The Company also owns an 83.5%
interest in the Burin mines and surrounding land claims in the
Tintic mining district 60 miles south-east of Salt Lake City, Utah and exploration interests
in the Amber Mineral belt in Alaska.
The Paroo Station lead mine has been on care and maintenance
since January 2015 (refer Figure 2).
A dedicated staff of plant operators and technicians have
undertaken consistent structural and integrity checks of plant and
equipment, run mills at regular intervals and maintained the
flotation tanks to ensure the plant can be re-started and brought
back to pre-closure production levels as expected within
months.
We refer readers to the Company's Annual Information Form dated
February 23, 2017 as filed on SEDAR
(www.sedar.com) and the Company's website
www.leadfxinc.com for details of historical production
performance for the Paroo Station mine and the NI43-101 Technical
Report on the Paroo Station Lead Carbonate Mine, Wiluna,
Western Australia dated
March 10, 2015 for prepared by SRK
Consulting (Australasia) Pty Ltd for details on Mineral
Resources.
Forward-Looking Statements
This news release may contain "forward-looking statements"
within the meaning of applicable Canadian securities laws.
Examples of forward-looking information in this news release
includes but is not limited to statements and information
concerning timing of the closing of the Offering, receipt of
regulatory approval to close the Offering, the share ownership by
each of Sentient and InCor in LeadFX upon completion of the
Offering, the timing and length of care and maintenance at Paroo
Station and the timing of the re-start of the Paroo Station and
when pre-closure production levels will be achieved.
Forward-looking statements are often, but not always, identified by
the use of words such as ''seek'', ''anticipate'', ''contemplate'',
''target'', ''believe'', ''plan'', ''estimate'', ''expect'', and
''intend'' and statements that an event or result ''may'',
''will'', ''can'', ''should'', ''could'' or ''might'' occur or be
achieved and other similar expressions. Forward-looking information
by its nature requires assumptions and involves known and unknown
risks, uncertainties and other factors which may cause the actual
results, performance or achievements to be materially different
from any future results, performance or achievements expressed or
implied by the forward-looking information, and readers are
cautioned not to place undue reliance on such information. These
statements are based on expectations, estimates and projections as
at the date of this news release and are subject to a number of
risks and uncertainties. Should one or more of these risks or
uncertainties materialize, or should assumptions underlying the
forward-looking information prove incorrect, actual results,
performance or achievement may vary materially from those expressed
or implied by the forward-looking information contained in this
news release. Should one or more of these risks or
uncertainties materialize, or should assumptions underlying the
forward-looking information prove incorrect, actual results,
performance or achievement may vary materially from those expressed
or implied by the forward-looking information contained in this
news release. These risk factors should be carefully considered and
readers are cautioned not to place undue reliance on
forward-looking information, which is current only as of the date
of this news release. All subsequent forward-looking information
attributable to LeadFX herein is expressly qualified in its
entirety by the cautionary statements contained in or referred to
herein. LeadFX does not undertake any obligation to release
publicly any revisions to this forward-looking information to
reflect events or circumstances that occur after the date of this
news release or to reflect the occurrence of unanticipated events,
except as may be required under applicable securities laws.
SOURCE LeadFX Inc.