Business
Lomiko Metals Announces Successful Closing of Private Placement and Increase in Flow-Through Financing
MONTREAL / Dec 12, 2022 / Business Wire / Lomiko Metals Inc. (TSX.V: LMR) (“Lomiko Metals” or the “Company”) announces that it has closed its previously announc
About this update from Lomiko Metals Inc.
[{"type":"text","content":"MONTREAL / Dec 12, 2022 / Business Wire / Lomiko Metals Inc. (TSX.V: LMR) (“Lomiko Metals” or the “Company”) announces that it has closed its previously announced non-brokered private placement (the “Private Placement”). The Company issued 40,520,497 units (the “Units”) at a price of $0.03 per Unit for aggregate gross proceeds of $1,215,615. Each Unit consists of one common share and one warrant exercisable for five years at $0.05. The Company will also be increasing the size of the previously announced flow-through financing. Belinda Labatte, CEO and Director stated: “We are pleased to have new and existing investors participate in this financing which allows the Company to further important value-generating studies on the La Loutre natural flake graphite project as it progresses the studies needed for its Pre-Feasibility Study (“PFS”). I am also pleased that management insiders represent over 10% of the placement, which demonstrates our team’s continued commitment to advancing Lomiko as a people-first, critical minerals company and operator of choice in Quebec.” Insiders of the Company subscribed for a total of 4,499,999 Units. As such, this 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 Units acquired by the insiders nor the consideration for the 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 this private placement as details of the respective participation of such insiders in the Offering was unknown at such time. 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% - Inv...