Great Lakes closes $609,450 first tranche of financing

Jun 6, 2016

Great Lakes Graphite Inc. has closed the first tranche of its non-brokered private placement, previously announced on April 4, 2016, and amended as announced on June 1, 2016. The first tranche of the financing was completed by issuing 5,135,000 units at a price of seven cents per unit for proceeds of $359,450 and 3,333,333 flow-through eligible shares at a price of 7.5 cents per share for proceeds of $250,000, for gross proceeds of $609,450.

Each unit in the offering consists of one common share of the company and one common share purchase warrant. Each warrant entitles the holder to purchase one additional common share of the company at a price of 10 cents for a period of 24 months after the closing of the offering.

Finders’ fees totalling $25,000 were paid and 266,666 finders’ warrants exercisable at 7.5 cents for a period of 36 months were issued to Secutor Capital Management Corp. as part of the closing of the financing. In accordance with applicable securities legislation, all securities issued in the private placement are subject to a statutory hold period of four months and one day. The private placement is subject to final approval by the TSX Venture Exchange.

Net proceeds from the offering will be used to recommission one or more production circuits at the Matheson micronization facility in Matheson, Ont., and for flowsheet development work related to the Lochaber graphite project located in southwestern Quebec.