Baselode Closes C$3.7M First Tranche of a Non-Brokered Flow-Through Private Placement
Baselode Closes C$3.7M First Tranche of a
Non-Brokered Flow-Through Private
Placement
/NOT FOR DISTRIBUTION TO
UNITED STATES
NEWSWIRE SERVICES OR FOR
DISSEMINATION IN
THE UNITED STATES
/
TORONTO
,
Aug. 30, 2021
/CNW/ - Baselode Energy Corp. ("Baselode" or the "Company") (TSXV:
FIND) (OTCQB: BSENF) is pleased to announce the closing of a first tranche of a non-brokered
private placement (the "Offering"). Under the first tranche, the Company sold 7,627,704 flow-through
units of the Company (the "FT Units") at a price of
C$0.48
per FT Unit for gross proceeds to the
Company of
C$3,661,298
. Each FT Unit will consist of one common share of the Company to be
issued as a "flow-through share" within the meaning of the Income Tax Act (
Canada
) (each, a "FT
Share") and one half of one common share purchase warrant (each whole warrant, a "Warrant").
Each Warrant issued under the first tranche will entitle the holder thereof to purchase one common
share (each, a "Warrant Share") at a price of
C$0.75
at any time on or before
August 30, 2023
.
Net proceeds from the Offering will be used for exploration work at the Company's Catharsis, Hook
and Shadow projects. Work at these projects includes diamond drill testing for near-surface,
basement-hosted, high-grade uranium targets in the
Athabasca
Basin area of northern
Saskatchewan, Canada
.
The gross proceeds from the issuance of the FT Shares will be used for "Canadian Exploration
Expenses" (within the meaning of the Income Tax Act (
Canada
)) (the "Qualifying Expenditures"),
which will be renounced with an effective date no later than
December 31, 2021
to the purchasers of
the FT Shares in an aggregate amount not less than the gross proceeds raised from the issue of the
FT Shares. If the Qualifying Expenditures are reduced by the Canada Revenue Agency, the
Company will indemnify each subscriber of FT Shares for any additional taxes payable by such
subscriber as a result of the Company's failure to renounce the Qualifying Expenditures.
Red Cloud Securities Inc. acted as finder under the Offering. Under the first tranche, the Company
paid total finder's fees of
C$256,291
and issued to the finders 533,939 warrants of the Company
(the "Finder's Warrants"). Each Finder's Warrant is exercisable to acquire one common share of the
Company at a price of
C$0.48
at any time on or before
August 30, 2023
. The FT Shares and
Warrant Shares issuable under the initial tranche of the Offering as well as any common shares of
the Company that are issuable from the Finder's Warrants will be subject to a hold period ending on
December 31, 2021
, in accordance with applicable securities laws.
The securities offered have not been, and will not be, registered under the United States Securities
Act of 1933, as amended (the "U.S. Securities Act") or any U.S. state securities laws, and may not
be offered or sold in
the United States
or to, or for the account or benefit of,
United States
persons
absent registration or an applicable exemption from the registration requirements of the U.S.
Securities Act and applicable U.S. state securities laws. This press release does not constitute an
offer to sell or the solicitation of an offer to buy securities in
the United States
, nor in any other
jurisdiction.
About Baselode Energy Corp.
Baselode currently controls 100% of approximately 207,000 hectares for exploration in the
Athabasca
Basin area, northern
Saskatchewan, Canada
. The land package is free of any option
agreements or underlying royalties.
Baselode's
Athabasca
2.0 exploration thesis is focused on discovering near-surface, basement-
hosted, high-grade uranium orebodies outside of the
Athabasca
Basin. The exploration thesis is
further complemented by the Company's preferred use of innovative and well-understood
geophysical methods to map deep structural controls to identify shallow targets for diamond-drilling.
For information and updates on Baselode please visit:
www.baselode.com
and please follow us on Twitter @BaselodeE
and please follow us on LinkedIn @BaselodeEnergyCorp
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the
TSX Venture Exchange policies) accepts responsibility for the adequacy or accuracy of this release.
Certain information in this press release may contain forward-looking statements. This information is
based on current expectations that are subject to significant risks and uncertainties that are difficult
to predict. Actual results might differ materially from results suggested in any forward-looking
statements. Baselode Energy Corp. assumes no obligation to update the forward-looking
statements, or to update the reasons why actual results could differ from those reflected in the
forward looking-statements unless and until required by securities laws applicable to Baselode
Energy Corp. Additional information identifying risks and uncertainties is contained in the Company's
filings with Canadian securities regulators, which filings are available under Baselode Energy Corp.
profile at
www.sedar.com
.
This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the
securities in
the United States
. The securities have not been and will not be registered under the
United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities
laws and may not be offered or sold within
the United States
or to, or for the account or benefit of,
U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws,
unless an exemption from such registration is available.
SOURCE
Baselode Energy Corp.
View original content:
http://www.newswire.ca/en/releases/archive/August2021/30/c5149.html
%SEDAR: 00044947E
For further information:
James Sykes, Chief Executive Officer, Phone: 306.221.8717, Email:
CO: Baselode Energy Corp.
CNW 11:36e 30-AUG-21