pcJ News Briefs – LeadFX Inc. (TSX: LFX) has entered into a binding term sheet with its controlling shareholder, Sentient Global Resources Fund IV, LP, and InCoR Energy Materials Limited for a non-brokered private placement of up to 3,125,000 common shares at $0.80 per share for gross proceeds of approximately $2.5 million, to close in two tranches.
Upon completion of the financing, Sentient and InCoR will hold approximately 82.3% and 3.9% of the issued and outstanding common shares of LeadFX, respectively.
photo credit: LeadFX
LEADFX ANNOUNCES PRIVATE PLACEMENT OFFERING
(All dollar amounts are in Canadian dollars)
TORONTO, ONTARIO – August 29, 2017 –LeadFX Inc. (the “Company” or “LeadFX”) (TSX: LFX) is pleased to announce that it has entered into a binding term sheet (“Binding Term Sheet”) with Sentient Global Resources Fund IV, LP (“Sentient”) and InCoR Energy Materials Limited (“InCoR”) for the issue of up to 3,125,000 common shares (“Common Shares”) of the Corporation at $0.80 per common Share by way of a non-brokered private placement for gross proceeds of approximately $2.5 million (the “Offering”), to close in two separate tranches.
Pursuant to the Binding Term Sheet, Sentient and InCoR have agreed to purchase no less than 607,312 and 642,688 Common Shares, respectively, under the first tranche of the Offering and no less than 910,969 and 964,031 Common Shares, respectively, under the second tranche of the Offering. Proceeds of the first tranche will be used for general corporate purposes and working capital needs of the Company based on an agreed schedule of budgeted expenditure and proceeds of the second tranche will be determined by InCoR and Sentient pursuant to the budgeted expenditure needs of the Company closer to the time of the second tranche closing. “We are pleased to have the ongoing support of our technology partner InCoR and our major shareholder Sentient, as InCoR works towards completing a definitive feasibility study on their innovative hydrometallurgical process.” said Rob Scargill, President and CEO. “If the current study work is successful, we believe that the technology has the potential to transform Paroo Station from a relatively short-life lead concentrate operation to a longer-life, lower-cost lead metal producer.”
The first tranche of the Offering is expected to close on or about August 31, 2017, with the second tranche of the Offering expected to close on or before October 31, 2017. The Binding Term Sheet and closing of the Offering is subject to certain conditions, including, the negotiation, execution and delivery of definitive legal documents and receipt of the approval of the Toronto Stock Exchange. As a further condition of the Offering, subject to certain exceptions, LeadFX has agreed not to issue any additional Common Shares for a period of 4 months after the closing date of the Offering without the prior written consent of Sentient and InCoR.
Following completion of the Offering, Sentient and InCoR will hold approximately 82.3% and 3.9% of the issued and outstanding Common Shares of LeadFX, respectively.
LeadFX is a Canadian-based mining company focused on the development of lead-silver projects located in stable jurisdictions. Our current portfolio includes a restart-ready lead operation in Western Australia and a development project in Utah, USA. The Company continues to seek opportunities at its new properties in North America to underpin future cash flow and growth. LeadFX trades under the symbol “LFX” on the Toronto Stock Exchange.
For further information please contact:
VP, Corporate Communications and Investor Relations
Suite 3001, 1 Adelaide Street East
Toronto, Ontario M5C 2V9
(416) 867 9298
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