Baselode Closes C$3.9M Final Tranche of Non- Brokered Flow-Through Private Placement
Baselode Closes C$3.9M Final Tranche of Non-
Brokered Flow-Through Private Placement
/NOT FOR DISTRIBUTION TO
UNITED STATES
NEWSWIRE SERVICES OR FOR
DISSEMINATION IN
THE UNITED STATES
/
TORONTO
,
Sept. 28, 2021
/CNW/ - Baselode Energy Corp. ("
Baselode
" or the "
Company
")
(TSXV: FIND) (OTCQB: BSENF) is pleased to announce the closing of the second and final tranche
of its previously announced non-brokered private placement (the "
Offering
"). Under the second
tranche, the Company sold 5,669,795 flow-through units of the Company (the "
FT Units
") at a price
of
C$0.48
per FT Unit and 2,548,684 non-flow-through units of the Company (the "
Units
") at a price
of
C$0.48
per Unit for gross proceeds to the Company of
C$3,944,869.92
. 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 Unit will consist of one common share of the
Company (each, a "
Unit Share
") and one half of one Warrant. Each Warrant issued under the
second 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
September 28, 2023
.
In aggregate, the Company sold 13,297,499 FT Units and 2,548,684 Units for aggregate gross
proceeds of
C$7.6M
under both tranches of the Offering.
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 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 second tranche, the
Company paid total finder's fees of
C$276,140.89
and issued to the finders 575,293 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
September 28, 2023
. The FT
Shares, Unit Shares and Warrant Shares issuable under the second 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
January 28, 2022
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.
Neither the 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.
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
Cautionary Note Regarding Forward-Looking Statements
: This press release includes certain
forward-looking statements and forward-looking information (together, "forward-looking
statements"). All statements other than statements of historical fact included in this release,
including, without limitation, statements regarding, the Offering, and other future plans and
objectives of the Company are forward-looking statements. There can be no assurance that such
statements will prove to be accurate and actual results and future events may vary from those
anticipated in such statements. Important risk factors that could cause actual results to differ
materially from the Company's plans or expectations include failure to close the Offering, a failure
to obtain final TSXV approval of the Offering and failure to raise sufficient funds on the proposed
terms or at all. The forward-looking statements in this press release were developed based on the
assumptions and expectations of management, including that TSXV acceptance for the Offering
will be obtained, the required fundraising will be completed, and the other assumptions disclosed
in this press release and that the risks described above will not materialize. There can be no
assurance that the Offering will complete. The Company expressly disclaims any intention or
obligation to update or revise any forward-looking statements whether as a result of new
information, future events or otherwise, except as otherwise required by applicable securities
legislation.
SOURCE
Baselode Energy Corp.
View original content:
http://www.newswire.ca/en/releases/archive/September2021/28/c8257.html
%SEDAR: 00044947E
For further information:
James Sykes, Chief Executive Officer, Phone: 306.221.8717, Email:
CO: Baselode Energy Corp.
CNW 19:45e 28-SEP-21