Lomiko Announces Successful Closing of Private Placement and Increase in Flow-Through Financing
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Lomiko Announces Successful Closing of Private Placement and Increase in
Flow-Through Financing
Montreal, Quebec – December 12th, 2022 - Lomiko Metals Inc. (TSX.V: LMR) (“Lomiko
Metals” or the “Company”) announces that it has closed its previously announced non-brokered
private placement (the “Private Placement”). The Company issued 40,520,497 units (the “Units”)
at a price of $0.03 per Unit for aggregate gross proceeds of $1,215,615. Each Unit consists of one
common share and one warrant exercisable for five years at $0.05. The Company will also be
increasing the size of the previously announced flow-through financing.
Belinda Labatte, CEO and Director stated: “We are pleased to h ave new and existing investors
participate in this financing which allows the Company to further important value -generating
studies on the La Loutre natural flake graphite project as it progresses the s tudies needed for its
Pre-Feasibility Study (“PFS”). I am also pleased that management insiders represent over 10% of
the placement, which demonstrates our team’s continued commitment to advancing Lomiko as a
people-first, critical minerals company and operator of choice in Quebec.”
Insiders of the Company subscribed for a total of 4,499,999 Units. As such, this participation
constitutes a “related party transaction” as defined under Multilateral Instrument 61 -
101 Protection of Minority Security Holders in Special Transactions (“MI 61 -101”). Such
participation is exempt from the formal valuation and minority shareholder approval requirements
of MI 61-101, as neither the fair market value of the Units acquired by the insiders nor the
consideration for the Units paid by such insiders exceed 25% of the Company’s market
capitalization. The Company did not file a material change report 21 days prior to the closing date
of this private placement as details of the respective participation of such insiders in the O ffering
was unknown at such time.
As announced previously, the net proceeds of the units will be used to incur expenses on its
exploration graphite and lithium properties . Below is a summary of the major categories applied
to the net proceeds as required by TSXV policy, in addition to working capital requirements:
15% - Technical report update to provide resource update.
30% - Metallurgical testing and value -added work activities including micronations,
spheroidization, purification and coating as well as battery testing.
Not more than 10% - Investor Relations and strategic advisory work.
The balance will be applied to working capital, finder fees and other project expenses.
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All the securities issued under the Offering are subject to a hold period of four months and one
day expiring on April 10, 2023. In connection wit h the closing of the Private Placement , the
Company paid cash finder’s fees totalling $36,211.00 and issued a total of 50,000 finder warrants
(the “Finder’s Warrants”). Each Finder’s Warrant is non-transferable and exercisable at a price of
$0.05 per share for a period of five years following closing.
Flow-Through Financing
The Company will increase the size of its previously announced flow -through financing (the
“Private Placement”) to a total 18,625,000 units (the “Units”) at a price of $0.04 per Unit for
aggregate gross proceeds of $745,000 (see news release dated December 5, 2022 for more details
regarding the initial announcement). Each FT Unit consists of one common share that will qualify
as a “flow -through share” within the meaning of the Income Tax Act (Canada) and the Taxation
Act (Québec) and one common share purchase warrant (a “Warrant”) with each whole Warrant is
exercisable at a price of $0.06 per share for a period of two years following the closing. The
increase remains subject to the approval of the TSX Venture Exchange.
About Lomiko Metals Inc.
Lomiko Metals has a new vision and a new strategy in new energy. Lomiko represents a company
with a purpose: a people -first company where we can manifest a world of abundant renewable
energy with Canadian and Quebec critical minerals for a solution in North America. Our goal is to
create a new energy future in Canada where we will grow the critical minerals workforce, become
a valued partner and neighbour with the communities in which we operate, and provide a secure
and responsibly sourced supply of critical minerals. Lomiko is ECOLOGO certified.
The Company holds exclusive mineral interests in its La Loutre graphite development in southern
Quebec. The La Loutre project site is located within the Kitigan Zibi Anishinabeg (KZA) First
Nations territory. The KZA First Nations are part of the Algonquin Nation and the KZA territory
is situated within the Outa ouais and Laurentides regions. Located 180 kilometres northwest of
Montreal, the property consists of 1 large, continuous block with 76 minerals claims totaling 4,528
hectares (45.3 km2). Lomiko Metals published a Preliminary Economic Assessment (“PEA”) on
September 10, 2021 w hich indicated the pr oject had a 15 -year mine life producing per year
100,000 tonnes of the graphite concentrate at 95%Cg or a total of 1.5Mt of the graphite
concentrate. This report was prepared as National Instrument 43-101 Technical Report for Lomiko
Metals Inc. by Ausenco Engineering Canada Inc., Hemmera Envirochem Inc., Moose Mountain
Technical Services, and Metpro Management Inc., collectively the Report Authors. The Bourier
project site is located near Nemaska Lithium and Critical Elements south-east of the Eeyou Istchee
James Bay territory in Quebec which consists of 203 claims, for a total ground position of
10,252.20 hectares (102.52 km2), in Canada’s lithium triangle near the James Bay region of
Quebec that has historically housed lithium deposits and mineralization trends.
Mr. Mike Petrina, Project Manager, a Qualified Person (“QP”) under National Instrument 43-101
– Standards of Disclosure for Mineral Projects, has reviewed and approved the technical disclosure
in this news release.
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For more information on Lomiko Metals, review the website at www.lomiko.com, contact Belinda
Labatte at 647-402-8379 or email: [email protected].
Cautionary Note Regarding Forward-Looking Information
This news release contains "forward -looking information" within the meaning of the applicable
Canadian securities legislation that is based on expectations, estimates, projections and
interpretations as at the date of this news release. The information in this news release about the
Company; and any other information herein that is not a historical fact may be "forward-looking
information" (“FLI”). All statements, other than statements of historical fact, are FLI and can be
identified by the use of statements that include words such as "anticipates", "plans", "continues",
"estimates", "expects", "may", "will", "projects", "predicts", “proposes”, "potential", "target",
"implement", “scheduled”, "intends", "could", "might", "should", "believe" and similar words or
expressions. FLI in this new release includes, but is not limited to: the Company’s objective to
become a responsible supplier of critical minerals, exploration of the Company’s projects,
including expected costs of exploration and timing to achieve c ertain milestones, including
satisfactory completion of due diligence and ability to reach an agreement with third party owners
in connection with projected acquisitions, timing for completion of exploration programs; the
Company’s ability to successfully fund, or remain fully funded for the implementation of its
business strategy and for exploration of any of its projects (including from the capital markets);
any anticipated impacts of COVID -19 on the Company’s business objectives or projects, the
Company's financial position or operations, and the expected timing of announcements in this
regard. FLI involves known and unknown risks, assumptions and other factors that may cause
actual results or performance to differ materially. This FLI reflects the Compan y’s current views
about future events, and while considered reasonable by the Company at this time, are inherently
subject to significant uncertainties and contingencies. Accordingly, there can be no certainty that
they will accurately reflect actual resul ts. Assumptions upon which such FLI is based include,
without limitation: potential of future acquisitions presently evaluated by the Company; current
market for critical minerals; current technological trends; the business relationship between the
Company, local communities and its business partners; ability to implement its business strategy
and to fund, explore, advance and develop each of its projects, including results therefrom and
timing thereof; the ability to operate in a safe and effective manner; uncertainties related to
receiving and maintaining exploration, environmental and other permits or approvals in Quebec;
any unforeseen impacts of COVID-19; impact of increasing competition in the mineral exploration
business, including the Company’s competitive position in the industry; general economic
conditions, including in relation to currency controls and interest rate fluctuations.
The FLI contained in this news release are expressly qualified in their entirety by this cautionary
statement, the “Forward -Looking Statements” section contained in the Company’s most recent
management’s discussion and analysis (MD&A), which is available on SEDAR at
www.sedar.com, and on the investor presentation on its website. All FLI in this news release are
made as of the date of this news release. There can be no assurance that such statements will prove
to be accurate, as actual results and future events could differ materially from those anticipated in
such statements. Accordingly, readers should not place undue reliance on forward-looking
information. The Company does not undertake to update or revise any such forward-looking
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statements or forward -looking information contained herein to reflect new events or
circumstances, except as may be required by applicable securities laws.
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 news release. No stock exchange, securities commission or other
regulatory authority has approved or disapproved the information contained herein.
On behalf of the Board,
Belinda Labatte
CEO and Director, Lomiko Metals Inc.
For more information, please contact:
Kimberly Darlington
Investor Relations, Lomiko Metals Inc.
514-771-3398