Mr. James Sykes reports
BASELODE ANNOUNCES REVISED BROKERED PRIVATE PLACEMENT FOR UP TO C$9.0 MILLION
Due to significant investor demand, Baselode Energy Corp. has increased the maximum size of its previously announced best efforts private placement from $7,500,018 to $9,000,018. The revised offering will consist of the sale of the following:
- Up to 3,700,049 units of the company at a price of 40.5405 cents per unit for gross proceeds of up to $1,500,018 from the sale of units;
- Up to 5,208,333 flow-through (FT) units of the company at a price of 48 cents per FT unit for gross proceeds of up to $2.5-million from the sale of FT units; and
- Up to 8,333,333 FT units to be sold to charitable purchasers (charity FT units) at a price of 60 cents per charity FT unit for gross proceeds of up to $5-million from the sale of charity FT units.
Red Cloud Securities Inc. is acting as lead agent and sole book runner on behalf of a syndicate of agents.
Each unit will consist of one common share of the company and one-half of one common share purchase warrant. Each FT unit and charity FT unit will consist of one common share of the company to be issued as a flow-through share within the meaning of the Income Tax Act (Canada) and one-half of one warrant. Each whole warrant shall entitle the holder to purchase one common share of the company at a price of 60 cents at any time on or before that date which is 24 months after the closing date of the offering.
The agents will have an option, exercisable in full or in part, up to 48 hours prior to the closing of the offering, to sell up to an additional 1,666,667 charity flow-through units for additional gross proceeds of up to $1-million.
Proceeds from the sale of FT shares will be used to incur Canadian exploration expenses as defined in Subsection 66.1(6) of the Income Tax Act and flow-through mining expenditures incurred pursuant to an exploration plan that primarily targets critical minerals, each as defined in Subsection 127(9) of the Income Tax Act. Such proceeds will be renounced to the subscribers with an effective date not later than Dec. 31, 2023, in the aggregate amount of not less than the total amount of gross proceeds raised from the issue of FT shares.
Subject to compliance with applicable regulatory requirements and in accordance with National Instrument 45-106 -- Prospectus Exemptions, up to 3,333,332 charity FT units (the LIFE units) will be offered for sale to purchasers resident in Canada pursuant to the listed issuer financing exemption under Part 5A of NI 45-106. The common shares of the company issuable from the sale of these LIFE units are expected to be immediately freely tradeable under applicable Canadian securities legislation if sold to purchasers resident in Canada.
All offered securities, excluding the LIFE units, will be offered by way of the accredited investor and minimum amount investment exemptions under NI 45-106, in all of the provinces of Canada. The common shares of the company issuable from the sale of these offered securities will be subject to a restricted period in Canada ending on the date that is four months plus one day following the closing of the offering, as defined in Subsection 2.5(2) of Multilateral Instrument 45-102 -- Resale of Securities.
The company intends to use the proceeds raised from the offering for exploration of the company's projects in the Athabasca basin and for general working capital purposes. The offering is scheduled to close on or around Oct. 16, 2023, and is subject to certain conditions, including, but not limited to, receipt of all necessary approvals, including the approval of the TSX Venture Exchange.
There is an offering document related to the offering that can be accessed under the company's profile at SEDAR+ and on the company's website. Prospective investors should read this offering document before making an investment decision.
About Baselode Energy Corp.
Baselode controls 100 per cent of approximately 264,172 hectares for exploration in the Athabasca basin area in Northern Saskatchewan, Canada. The land package is free of any option agreements or underlying royalties.
The company discovered the Ackio near-surface, high-grade uranium deposit in September, 2021. Ackio measures greater than 375 metres along strike and greater than 150 metres wide, comprising at least 11 separate zones, with mineralization starting as shallow as 28 metres beneath the surface and down to approximately 300 metres depth beneath the surface, with the bulk of mineralization occurring in the upper 120 metres. Ackio remains open to the west and south, and along the Athabasca sandstone unconformity to the east and south.
Baselode's Athabasca 2.0 exploration thesis focuses on discovering near-surface, basement-hosted, high-grade uranium orebodies outside the Athabasca basin. The exploration thesis is further complemented by the company's preferred use of innovative and well-understood geophysical methods to map deep structural controls to identify shallow targets for diamond drilling.
We seek Safe Harbor.
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