PERTH, Australia, Dec. 14, 2017 /CNW/ - LeadFX Inc. (the "Company" or "LeadFX") (TSX: LFX) today announces that it has entered into a binding term sheet with Sentient Global Resources Fund IV, LP ("Sentient") and InCoR Energy Materials Limited ("InCoR") for the issue of up to 2,374,301 units, each unit being comprised of one (1) common share of the Company ("Common Share") and one (1) Common Share purchase warrant for each one (1) Common Share issued (hereinafter, a "Unit").
Subject to TSX approval, the Units shall be issued at $0.49 per Unit by way of non-brokered private placement for gross proceeds of approximately $1,163,407 (the "Offering"), in two separate tranches of approximately 1,187,150 Units each as detailed below. Each warrant will entitle the holder thereof to purchase one (1) additional Common Share at a price of $0.61 any time within 60 months of completion of the Offering.
| Tranche 1 Units | Tranche 2 Units | Total Units | ||||
| Common Shares |
Warrants | Common Shares |
Warrants | Common Shares |
Warrants | |
| Sentient | 576,444 | 576,444 | 576,777 | 576,777 | 1,153,554 | 1,153,554 |
| InCoR | 610,373 | 610,373 | 610,374 | 610,374 | 1,220,747 | 1,220,747 |
| Total | 1,187,150 | 1,187,150 | 1,187,151 | 1,187,151 | 2,374,301 | 2,374,301 |
Proceeds from the Units will be applied toward general corporate and working capital needs of the Company.
Tranche 1 of the Offering is expected to close on or before December 20, 2017 and Tranche 2 of the Offering is expected to close on or before January 12, 2018.
Subscription Agreements for Tranche 1 Units have been executed by Sentient and InCoR. Completion of Tranche 1 is conditional upon no order, ruling or decision being issued or granted by a court or regulatory or administrative authority that has the effect of precluding or restricting the issuance or trading of the Common Shares, or that affects any person or company who engages in such a trade, the receipt of all regulatory approvals including, but not limited to TSX approval and customary conditions for an offering of this type. Completion of Tranche 2 is conditional upon the same conditions as Tranche 1 and negotiating and the execution and delivery of into definitive legal agreements.
Following completion of the Offering Sentient and InCoR will hold approximately 80.5% and 6.5% of the issued and outstanding Common Shares, respectively.
About LeadFX
LeadFX is a Toronto Stock Exchange listed (TSX: LFX), Australian based, mining company focused on the development of its lead and lead-silver projects located in Australia and North America. The Company's primary undertaking is the Paroo Station lead mine. The Paroo Station lead mine is located 30km west of the town of Wiluna in Western Australia (refer Figure 1). The Company also owns an 83.5% interest in the Burin mines and surrounding land claims in the Tintic mining district 60 miles south-east of Salt Lake City, Utah and exploration interests in the Amber Mineral belt in Alaska.
The Paroo Station lead mine has been on care and maintenance since January 2015 (refer Figure 2). A dedicated staff of plant operators and technicians have undertaken consistent structural and integrity checks of plant and equipment, run mills at regular intervals and maintained the flotation tanks to ensure the plant can be re-started and brought back to pre-closure production levels as expected within months.
