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McFarlane Lake announces up to C$1 Million Private Placement

May 21, 2024

McFarlane Lake Mining Limited, a Canadian gold exploration and development company, today announced that it intends to offer for sale, on a non-brokered private placement basis: (i) up to 22,222,222 units of the Company (the "Units") at a price of C$0.045 per Unit; and (ii) up to 20,000,000 flow-through shares of the Company (the "FT Shares", and together with the Units, the "Securities") at a price of C$0.05 per FT Share, in any combination, to raise collective aggregate gross proceeds of up to C$1,000,000 (together, the "Offering"). The FT Shares will qualify as "flow-through shares" within the meaning of subsection 66(15) of the Income Tax Act (Canada) (the "Tax Act"). 

Each Unit will consist of one common share of the Company (each, a "Common Share") and one-half of one common share purchase warrant (each whole warrant, a "Warrant"). Each Warrant will be exercisable by the holder to acquire one Common Share at a price of C$0.07 per Common Share for a period of 18 months from the closing of the Offering, which is expected to occur on or about June 7, 2024. The Offering may be closed in multiple tranches at the sole discretion of the Company.

McFarlane Lake intends to utilize the net proceeds from the Offering: (i) to further explore the Company's past producing McMillan and West Hawk Lake gold properties; (ii) to expand compliant gold resources at the High Lake property; and (iii) for general working capital purposes. The gross proceeds received by the Company from the sale of the FT Shares will be used to incur eligible "Canadian exploration expenses" that will qualify as "flow-through mining expenditures" as such terms are defined in the Tax Act (the "Qualifying Expenditures"). All Qualifying Expenditures will be renounced in favour of the subscribers of the FT Shares effective December 31, 2024. 

There can be no assurances that the Offering will be completed on the terms set out herein, or at all, or that the proceeds of the Offering will be sufficient for the purposes of the Company set out herein. In connection with the Offering, the Company may pay finders' fees equal to: (i) 3.0% of the aggregate gross proceeds of the Offering payable in cash; (ii) 3.0% of the aggregate Securities sold payable in Units; or (iii) any combination of cash and Units calculated in the manner set forth in (i) or (ii), as applicable. 

The Offering is subject to acceptance by Cboe Canada Inc. and all regulatory approvals, and all of the securities issued in connection with the Offering will be subject to applicable statutory holding periods or any other resale restrictions imposed under applicable securities legislation.

About McFarlane Lake Mining 

McFarlane Lake is a mineral exploration company focused on the exploration and development of the High Lake mineral property located immediately east of the Ontario-Manitoba border and the West Hawk Lake mineral property located immediately west of the Ontario-Manitoba border. In addition, McFarlane holds the McMillan and Mongowin mineral property located 70 km west of Sudbury and owns the Michaud/Munro mineral properties 115 km east of Timmins. McFarlane is a "reporting issuer" under applicable securities legislation in the provinces of Ontario, British Columbia and Alberta.

Tags: Northern Ontario / Exploration / Gold / All Articles