LeadFX closes $1-million first tranche of placement
2017-08-31 18:50 ET - News Release
Mr. Rob Scargill reports
LEADFX ANNOUNCES CLOSING OF FIRST TRANCHE OF PRIVATE PLACEMENT OFFERING
Further to the news release dated Aug. 29, 2017, LeadFX Inc. has closed the first tranche of its non-brokered private placement financing for the issue of up to 3,125,000 common shares of the company at 80 cents per common share for gross proceeds of approximately $2.5-million.
The common shares sold under the first tranche are subject to a four-month hold period, which, under applicable Canadian securities laws, expires on Jan. 1, 2018.
Under the first tranche, Sentient Global Resources Fund IV LP has purchased 607,312 common shares, and InCoR Energy Materials Ltd. (InCoR) has purchased 642,688 common shares for gross proceeds of $1-million. Proceeds of the first tranche will be used for general corporate purposes and working capital needs of the company based on an agreed schedule of budgeted expenditure.
The second and final tranche of the offering is expected to close on or before Oct. 31, 2017.
In addition, the company is also pleased to announce the appointment of David Warner as chairman of the board of directors, effective immediately. Mr. Warner is an accomplished and experienced professional accountant and former partner at KPMG LLP, having retired in September, 2010, after 36 years of service. During this time, Mr. Warner worked primarily with public companies in the areas of mining, oil and gas, regulated industries, and real estate. Mr. Warner has extensive board and audit committee experience as an executive and as a director of numerous public and private companies.
"The board and management team are delighted that David has accepted the role of chairman, and we wish him much success in this new role," said Rob Scargill, president and chief executive officer. "David's background in finance and audit and his thorough understanding of the company will provide a steady hand as we transition into the next phase of the company's development."
About LeadFX Inc.
LeadFX is a Canadian-based mining company focused on the development of lead-silver projects located in stable jurisdictions. Its current portfolio includes a restart-ready lead operation in Western Australia and a development project in Utah, United States. The company continues to seek opportunities at its new properties in North America to underpin future cash flow and growth.