Ms. Belinda Labatte reports
LOMIKO INCREASES PREVIOUSLY ANNOUNCED PRIVATE PLACEMENT
Lomiko Metals Inc. has increased the size of its previously announced $1-million non-brokered private placement to a total 40,520,497 units at a price of three cents per unit for aggregate gross proceeds of $1,215,615 (see news release dated Oct. 25, 2022, for more details regarding the initial announcement). Each Unit consists of one common share of the Company and one warrant. Each warrant shall entitle the holder to acquire one (1) additional common share of the Company at a price of $0.05 for a period of 60 months.
Closing of the Private Placement is expected to occur on or about December 9, 2022. The increase remains subject to the approval of the TSX Venture Exchange
As announced previously, the net proceeds of the units will be used to incur expenses on its exploration graphite and lithium properties. Below is a summary of the major categories applied to the net proceeds as required by TSXV policy, in addition to working capital requirements:
- 15% - Technical report update to provide resource update.
30% - Metallurgical testing and value-added work activities including micronations, spheroidization, purification and coating as well as battery testing.
Not more than 10% - Investor Relations and strategic advisory work.
The balance will be applied to working capital, finder fees payable under the Private Placement and other project expenses.
Closing is subject to several prescribed conditions, including, without limitations, approval of the TSX Venture Exchange. All securities issued pursuant to this private placement will be subject to a hold period of four months and one day from the closing date. The Private Placement remains subject to TSX Venture Exchange approval.
About Lomiko Metals Inc.
Lomiko Metals has a new vision and a new strategy in new energy. Lomiko represents a company with a purpose: a people-first company where we can manifest a world of abundant renewable energy with Canadian and Quebec critical minerals for a solution in North America. Our goal is to create a new energy future in Canada where we will grow the critical minerals workforce, become a valued partner and neighbour with the communities in which we operate, and provide a secure and responsibly sourced supply of critical minerals. Lomiko is ECOLOGO certified.
The Company holds exclusive mineral interests in its La Loutre graphite development in southern Quebec. The La Loutre project site is located within the Kitigan Zibi Anishinabeg (KZA) 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 76 minerals claims totaling 4,528 hectares (45.3 km2). 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 ("QP") under National Instrument 43-101 - Standards of Disclosure for Mineral Projects, has reviewed and approved the technical disclosure in this news release.
We seek Safe Harbor.
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