TORONTO, July 06, 2026 (GLOBE NEWSWIRE) -- McFarlane Lake Mining Limited ("McFarlane" or the "Company") (CSE: MLM, OTC: MLMLF, FRA: W2Z) is pleased to announce that it has received exercise instructions from holders of an aggregate of 41,507,200 common share purchase warrants (the "Warrants") at an exercise price of C$0.15 per Warrant, which are expected to result in aggregate exercise funds of C$6,226,080 (the "Exercise Process"). Upon completion of the Exercise Process and receipt of the applicable exercise funds, the Company expects to issue an aggregate of 41,507,200 common shares (the "Shares") in respect of the exercised Warrants.
The Warrants were originally issued in connection with the Company's previously announced private placement of debenture units that closed on September 29, 2025 (the "Debenture Offering"), pursuant to which the Company issued 15,000 debenture units comprised, in the aggregate, of US$15,000,000 principal amount of senior secured debentures (the "Debentures") and 48,000,000 Warrants. The exercised Warrants represent approximately 86% of the Warrants originally issued under the Debenture Offering. Each original holder of Warrants determined, on a voluntary basis, whether to exercise its own Warrants, continue to hold them, or to sell them, and no original holder of Warrants was required to exercise, sell or otherwise dispose of any of its Warrants. Certain of the exercised Warrants were exercised by the original holders thereof, while others were exercised by independent third-party investors who had acquired such Warrants from original holders prior to exercise. While the Company was aware that such acquisitions had occurred, it was not a party to, and did not participate in, arrange or otherwise influence those acquisitions, which were privately negotiated among the original holders and the independent third-party investors. Following these exercises, an aggregate of 6,492,800 Warrants are expected to remain outstanding and unexercised, each of which is exercisable at C$0.15 and expires on September 29, 2028.
The Company intends to apply the funds received from the exercise of Warrants towards a pro rata redemption of Debentures held by the holders of Debentures (the "Debentureholders") who participated in the Exercise Process, which redemption will be subject to the approval of Debentureholders holding a majority of the principal amount of the Debentures. The Company has engaged in discussions with the lead lenders, which hold sufficient principal amount of Debentures to approve such pro rata redemption, and accordingly expects that the required Debentureholder approval will be obtained. Participating Debentureholders are expected to receive repayment of the principal amount of their Debentures, on a pro rata basis, together with all interest that would otherwise have accrued through the Debentures' scheduled maturity date of October 26, 2026. To the knowledge of the Company, no insiders or related parties of the Company participated in the Exercise Process.