Margaret Lake Diamonds Closes Private Placement
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NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN
THE UNITED STATES
Margaret Lake Diamonds Closes Private Placement
VANCOUVER, BC / July 20, 2022 / Margaret Lake Diamonds Inc. ("MLD" or the "Company")
(TSXV:DIA) (FKT:M85) (OTC PINK:DDIAF) is pleased to announce it has closed the second and final
tranche of its non-brokered private placement on July 18, 2022 (the "Second Tranche"). The first tranche
of the non-brokered private placement closed on June 17, 2022, raising aggregate gross proceeds of
$777,368.
The Second Tranche consists of the issuance of:
(i) an aggregate of 5,550,285 units of the Company (each, a " Unit") at a price of $0.14 per Unit for
gross proceeds of $777,039.90. Each Unit consists of one common share in the capital of the
Company (each, a " Common Share ") and one warrant exercisable to purchase one Common
Share at a price of $0.28 per for a period of 24 months from the date of issuance; and
(ii) an aggregate of 2,650,327 flow-through units of the Company (each, a " FT Unit") at a price of
$0.15 per FT Unit for gross proceeds of $397,549.05. Each FT Unit is comprised of one flow-
through share (each, a " FT Share") and one warrant exercisable to purchase one Common Share
at a price of $0.30 per for a period of 24 months from the date of issuance.
The gross proceeds from the issuance of the FT Units will be used for Canadian Exploration Expenses
and will qualify as "flow-through mining expenditures", as defined in subsection 127(9) of the Income
Tax Act (Canada). The net proceeds from the issuance of the Units will be used for legal, accounting and
general administrative costs. The warrants issued pursuant to the Second Tranche are not subject to any
acceleration provisions.
Finder's fees of 37,333 non-transferable flow-through share purchase warrants (the " FT Finder's
Warrants") and 257,142 non-transferrable share purchase warrants (the “NFT Finder’s Warrants”)
were issued to Research Capital Company in connection with the Second Tranche. Each FT Finder’s
Warrant entitles the holder to purchase one FT Share at a price of $0.30 and each NFT Finder’s Warrant
entitles the holder to purchase one Common Share at a price of $0.28, both for a period of 24 months after
the date of issuance.
The non-brokered private placement, including the Second Tranche, remains subject to the final approval
of the TSX Venture Exchange. The securities issued in connection with the Second Tranche bear a
statutory four month hold period which expires on November 19, 2022.
Two insiders of the Company subscribed for an aggregate of 650,000 Units under the Second Tranche,
which is a "related party transaction" within the meaning of Multilateral Instrument 61-101 Protection of
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Minority Security Holders in Special Transactions ("MI 61-101 "). The issuances to the insiders are
exempt from the requirements to obtain a formal valuation and minority shareholder approval in reliance
of sections 5.5(a) and 5.7(a) of MI 61-101, respectively, on the basis that participation in the Second
Tranche by the insiders did not exceed 25% of the fair market value of the Company's market
capitalization. The Company did not file a material change report more than 21 days before the expected
closing of the Second Tranche as the details of the Second Tranche and the participation therein by
related parties of the Company were not settled until shortly prior to closing and the Company wished to
close on an expedited basis for sound business reasons.
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.
"Yari Nieken"
President, Chief Executive Officer and Chairman
Tel: 604.328.0425 | Email: [email protected]
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 “US Securities Act”) or any state securities laws and may
not be offered or sold within the United States 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.
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. Such statements
include statements regarding the tax treatment of the FT Shares. 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.