by Daniel Webster, dWeb.News Publisher
MONTREAL–(BUSINESS WIRE)–Lomiko Metals Inc. (TSX.V: LMR) (“Lomiko Metals” or the “Company”) announces that it has received TSX Venture Exchange (the “Exchange”) approval and has closed its non-brokered private placement (the “Private Placement”) and will issue 18,440,870 flow-through units (the “FT Units”) at a price of $0. 115 per FT Unit for aggregate gross proceeds of $2,120,700.05.
Each unit consists of one common share (a “Share”), one-half of a common share purchase warrant (“Warrant”) with each Warrant having a value of $0. 18 per share for a period of two years.
The Company has paid cash finder fees of $99,785 and issued 867,695 finder warrants (the “Finder’s Warrants”) to two parties. The Finder’s Warrants can be purchased at a cost of $0. 18 per share for a period of two years. These finder fees have been corrected from the press release that was issued yesterday, December 22, 2021.
The securities have been issued having a hold period expiring April 23, 2022.
An insider of the Company subscribed for 434,783 FT Units. As such, his participation constitutes a “related party transaction” as defined under Multilateral Instrument 61-101 Protection of Minority Security Holders in Special Transactions (“MI 61-101”). Such participation is exempt from the formal valuation and minority shareholder approval requirements of MI 61-101 as neither the fair market value of the FT Units acquired by the insiders nor the consideration for the FT Units paid by such insiders, exceed 25% of the Company’s market capitalization. The Company did not file a material change report 21 days prior to the closing date of the first tranche of the Offering as details of the respective participation of such insiders in the Offering was unknown at such time.
The Company intends to use the gross proceeds of the Private Placement to incur Canadian Exploration Expenses and “flow-through mining expenditures” as defined in the Tax Act on the Company’s La Loutre and Bourier Properties which will be incurred on or before December 31, 2022.
About Lomiko Metals Inc.
Lomiko Metals has a new vision and a new strategy in new energy. Lomiko is a company that has purpose. We are a people-first business and can create a world of abundant, renewable energy using Canadian and Quebec critical mineral for a solution in North America. Our vision is to build a new energy future for Canada. We will increase the number of critical minerals workers, be a valued neighbor and partner in the communities we serve, and ensure a reliable and responsible supply of critical minerals.
The Company holds a 100% interest in its La Loutre graphite development in southern Quebec. The La Loutre project site can be found within the Kitigan Ziibi Anishinabeg First Nations territory. The KZA First Nations are part of the Algonquin Nation and the KZA territory is situated within the Outaouais and Laurentides regions. Located 180 kilometres northwest of Montreal, the property consists of 1 large, continuous block with 48 minerals claims totaling 2,867 hectares (28.7km2). Lomiko Metals published a Preliminary Economic Assessment (“PEA”) on September 10, 2021 which indicated the project had a 15 year mine life producing per year 100,000 tonnes of the graphite concentrate at 95%Cg or a total of 1.5Mt of the graphite concentrate. This report was prepared as National Instrument 43-101 Technical Report for Lomiko Metals Inc. by Ausenco Engineering Canada Inc., Hemmera Envirochem Inc., Moose Mountain Technical Services, and Metpro Management Inc., collectively the Report Authors. 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.
Mr. Mike Petrina, Project Manager, a Qualified Person under National Instrument 43-101 – Standards of Disclosure for Mineral Projects, has reviewed and approved the technical disclosure in this news release.
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. This news release contains information about the Company. Any other information that is not historical may be considered “forward-looking information”. Other than statements of historical facts, all statements are FLI. Statements that contain words like “anticipates”,” “plans”, estimates”, and “continues”, as well as any other information, may be “forward-looking information”. 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 is subject to known and unknown risks and assumptions that could cause actual results and performance to differ materially. The FLI represents the Company’s current views on future events and is subject to significant uncertainties. They cannot be guaranteed to 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 contained in this news release were made on the date of this release. These statements are not guaranteed to be accurate as future results and events may differ from what is anticipated. Forward-looking information should not be relied upon by readers. Except as required by securities laws, the Company cannot revise or update any forward-looking statements.
Neither the TSX Venture Exchange or its Regulation Services Provider (as defined in the policies by the TSX Venture Exchange), accepts liability for the accuracy or adequacy of this news release. The information in this news release has not been approved or disapproved by any stock exchange, securities commission, or other regulatory authority.
On behalf of the Board,
CEO and Director, Lomiko Metals Inc.
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