Flow-Through and Non Flow-Through Private Placement Announced
VANCOUVER, BC / May 10, 2022 / Margaret Lake Diamonds Inc. ("MLD" or the "Company") (TSXV:DIA)
| (FKT:M85) (OTC PINK:DDIAF) | announces a private placement of up to 3,333,333 flow-through units at an offering |
| price of $0.15 per flow-through unit for up to $500,000 (the “FT Offering”). Each flow-through unit will consist of one | |
| flow-through share and one share purchase warrant entitling the holder to purchase a non flow-through share at a price | |
| of $0.30 for a period of two (2) years. |
The Company also announces a non-brokered private placement of up to 7,142,857 non flow-through units at an offering price of $0.14 per unit for up to $1M (the “NFT Offering”).. Each non flow-through unit will consist of one non flowthrough share and one share purchase warrant entitling the holder to purchase an additional non flow-through common share at a price of $0.28 for a period of two (2) years.
The aggregate gross proceeds from the sale of the FT Offering will be used to contribute to and maintain the companies share in its Joint Venture with Arctic Star Diamond Exploration. While the aggregate gross proceeds from the sale of the NFT Offering will be used for legal, accounting and General Administrative costs. The closing of the Offering is subject to receipt of all necessary regulatory approvals including the TSX Venture Exchange. Finder's fees will be payable in accordance with the policies of the TSX Venture Exchange.
All securities issued in connection with the Offering will be subject to a statutory hold period expiring four months and one day after closing of the Offering. Any participation by insiders in the Offering will constitute a related party transaction under Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions ("MI 61-101") but is expected to be exempt from the formal valuation and minority shareholder approval requirements of MI 61-101.
This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the U.S. The securities have not been and will not be registered under the U.S. Securities Act of 1933, as amended, or any state securities laws and may not be offered or sold within the U.S. or to U.S. persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.
About Margaret Lake Diamonds Inc.
MLD is a Canadian based mineral exploration company. As part of its joint venture with Arctic Star Exploration, MLD holds an 18.5 per cent interest in the Diagras diamond project Northwest Territories property. The property hosts 13 known kimberlites originally discovered by DeBeers in the 1990’s and MLD believes there is an opportunity to apply modern exploration techniques to define additional kimberlites. Additionally MLD owns 100% interest in the Mormon Lake Uranium Property near Payson, Arizona.
On behalf of the board
Margaret Lake Diamonds Inc. "Neil Foran" President/Chief Executive Officer, Director Tel: 778.321.4638 email: [email protected]
Disclaimer for Forward-Looking Information:
Certain statements in this release are forward-looking statements, which reflect the expectations of management. Forward-looking statements consist of statements that are not purely historical, including any statements regarding beliefs, plans, expectations, or intentions regarding the future. Forward-looking statements in this press release relate to, among other things: completion of the proposed Arrangement. Actual future results may differ materially. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. There is no assurance any of the conditions for closing will be met. Forward-looking statements reflect the beliefs, opinions, and projections on the date the statements are made and are based upon a number of assumptions and estimates that, while considered reasonable by the respective parties, are inherently subject to significant business, economic, competitive, political and social uncertainties and contingencies. Readers should not place undue reliance on the forward-looking statements and information contained in this news release concerning these times. Except as required by law, the Company does not assume any obligation to update the forward-looking statements of beliefs, opinions, projections, or other factors, should they change, except as required by law
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.