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Lomiko Metals Inc. Closes Financings for Gross Proceeds of $5,520,800

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Lomiko Metals Inc. Closes Financings for Gross Proceeds of $5,520,800

 

 

 

 

 

LOMIKO METALS INC. (TSX-V:LMR) is pleased to announce that it has successfully completed its previously announced public offering in connection with the short form prospectus of the Company dated March 6, 2014.
 

Under the Public Offering, 26,584,180 units of the Company were sold at a price of $ 0.11 per Unit and 4,627,000 units of the Company were sold at a price of $0.13 per Flow-Through Unit.
 

Each Unit consists of one common share of the Company and one-half of one common share purchase warrant. Each Flow-Through Unit consists of one Common Share to be issued on a “flow-through” basis within the meaning of the Income Tax Act (Canada) and one-half of one common share purchase warrant.
 

Each Unit Warrant entitles the holder thereof to purchase one common share of the Company at a price of $0.15 per Unit Warrant Share at any time before the date that is 18 months following the closing date of the Public Offering. Each Flow-Through Unit Warrant entitles the holder thereof to purchase one common share of the Company at a price of $0.20 per Flow-Through Unit Warrant Share at any time before the date that is 18 months following the closing date of the Public Offering.
 

In consideration for services rendered in connection with the Public Offering, the Company has paid a cash commission equal to 8% of the gross proceeds received from the sale of the Units and the Flow-Through Units and the Company granted 1,872,671 compensation options, with each compensation option being exercisable to purchase one common share of the Company for a period of 18 months following the closing date of the Public Offering, at a price of $0.11 per common share. Total commission and fees related to the Units and the Flow-Through Units under the Prospectus were $381,780.83.
 

An overallotment provision granted under the Prospectus was not utilized and is now extinguished.
 

The Company is also pleased to announce the closing of its previously announced concurrent non-brokered offering by issuing 15,346,231 flow-through units for additional gross proceeds of $1,995,010.03. The securities underlying the Private Placement Units were issued on the same terms as the securities underlying the Flow-Through Units that were issued under the Public Offering. In connection with the Private Placement, the Company paid a finder’s fee of 8% in cash and issued 920,774 compensation options, with each compensation option being exercisable to purchase one common share of the Company for a period of 18 months following the closing date of the Private Placement, at a price of $0.13 per common share. Total commission and fees related to Private Placement Units were $194,600.80.
 

The net proceeds from the Public Offering of $3,143,988.97 and the Private Placement of $1,800,409.23 will be used by Lomiko primarily in connection with the exploration program on the Quatre-Milles East and West mineral properties (Quebec), for business development and for working capital and general corporate purposes. In particular, the proceeds of the flow-through shares under the Public Offering and the Private Placement will be used by the Company to incur eligible Canadian Exploration Expenses as defined by the Income Tax Act (Canada).

Posted March 13, 2014

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