Lomiko receives conditional TSX-V OK for financing

Jul 22, 2022

2022-07-21 20:08 ET – News Release


Mr. Belinda Labatte reports


Lomiko Metals Inc. has received conditional approval and will apply to the TSX Venture Exchange to close its non-brokered private placement of 9,765,400 flow-through (FT) units at a price of 6.5 cents per FT unit for aggregate gross proceeds of $634,751.

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 (Quebec) and one-half of a common share purchase warrant, with each whole warrant exercisable at a price of 10 cents per share for a period of two years following closing.

Subject to regulatory approval, the company will pay cash finders’ fees of $31,737.55 and issue 580,182 finders’ warrants to three parties. Each finder’s warrant is non-transferable and is exercisable at a price of 10 cents per share for a period of two years following closing.

Pursuant to applicable Canadian securities laws, all securities issued pursuant to this private placement are subject to a hold period of four months and one day. The private placement remains subject to the final approval of the TSX Venture Exchange.

The company intends to use the gross proceeds of the private placement to incur Canadian exploration expenses and flow-through mining expenditures as defined in the Income Tax Act (Canada) and the Taxation Act (Quebec) on the company’s Laurentides regional graphite exploration program and the Bourier lithium property, which will be incurred on or before Dec. 31, 2023, and renounced with an effective date no later than Dec. 31, 2022, to the initial purchasers of FT units in an aggregate amount not less than the gross proceeds from the sale of the FT units.

Chief executive officer and director Belinda Labatte commented: “We are pleased to secure flow-through financing and applying the new critical minerals flow-through credit in this financing, which is pending further details and qualifications of the new credit announced in the 2022 budget. The critical minerals exploration tax credit (CMETC) is a new tax credit proposed in budget 2022 on April 7, 2022. The 30-per-cent tax credit would be applicable to eligible expenses in the exploration of critical minerals in Canada aligned with the government’s new critical mineral strategy. The announced critical mineral strategy and tax credit is important and directly aligned with our ongoing regional strategy to develop the natural flake graphite claims and to advance our Bourier lithium exploration program. At La Loutre, we continue to advance our diamond drill program in the EV zone; environmental baseline studies and metallurgical studies continue. This program will replicate commercial processing and purification steps to evaluate the performance of the La Loutre flake graphite in battery anode applications.”

Regional graphite exploration program in the Grenville province

Lomiko has initiated helicopter-borne geophysical surveys on its six regional graphite properties for the purpose of data acquisition, aiming to identify areas of prospective graphite mineralization for future field follow-up. The program will cover approximately 14,255 hectares of mineral claims and 236 claims in total. These new claims lie within a 100-kilometre radius of the company’s flagship La Loutre graphite and were previously announced on May 16, 2022. With this work, the company aims to identify near-surface conductors, which will help guide the fieldwork in the future and further define the regional prospectivity for natural flake graphite.

Bourier exploration update

In addition, at the company’s Bourier prospect, Lomiko and Critical Elements Lithium Corp. (the operator) have commenced the 2022 field exploration program. The field program is expected to last four weeks. The lithium-tantalum-cesium anomalies are of particular interest because they represent an unprecedented discovery in the Bourier claim. This anomaly spans along a 2.5-kilometre-long, northeast-trending mica-rich white pegmatites system. Structural interpretation by GoldSpot suggests this lithium-tantalum-cesium trend may extend to the Lemare Li showing.

About Lomiko Metals Inc.

Lomiko has a new vision and a new strategy in new energy. Lomiko represents a company with a purpose: a people-first company that manifests a world of abundant renewable energy with Canadian and Quebec critical minerals for a solution in North America. Lomiko’s goal is to create a new energy future in Canada where it will grow the critical minerals work force, become a valued partner and neighbour with the communities in which it operates, and provide a secure and responsibly sourced supply of critical minerals. Lomiko is Ecologo certified.

The company holds a 100-per-cent interest 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 Outaouais and Laurentides regions. Located 180 kilometres northwest of Montreal, the property consists of one large, continuous block with 76 minerals claims totalling 4,528 hectares (45.3 square kilometres). Lomiko Metals published a preliminary economic assessment (PEA) on Sept. 10, 2021, which indicated the project had a 15-year mine life producing per year 100,000 tonnes of the graphite concentrate at 95 per cent graphite concentrate or a total of 1.5 million tonnes of graphite concentrate. This report was prepared as a National Instrument 43-101 technical report for Lomiko by Ausenco Engineering Canada Inc., Hemmera Envirochem Inc., Moose Mountain Technical Services and Metpro Management Inc. The Bourier project site is located near Nemaska Lithium and Critical Elements southeast 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 square kilometres), in Canada’s lithium triangle near the James Bay region of Quebec, which has historically housed lithium deposits and mineralization trends.

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.

We seek Safe Harbor.


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