Lomiko Metals Inc. (TSX-V: LMR) announces that it has closed its previously announced non-brokered private placement. The Company issued 40,520,497 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 have 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 studies 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. 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 Offering 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.

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 with 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. 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  to a total 18,625,000 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 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 Outaouais 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 which indicated the project 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 under National Instrument 43-101 – Standards of Disclosure for Mineral Projects, has reviewed and approved the technical disclosure in this news release.