Great Lakes Graphite (GLK-V) June 24, '16 wishes to announce that it has closed on its non-brokered private placement, initially announced on April 4, 2016 and amended as announced, first on June 1, 2016 and again on June 21, 2016. The second and final tranche of the Financing was completed by issuing 3,130,000 units at a price of $0.07 per unit for proceeds of $219,100 and 5,086,000 flow-through eligible shares at a price of $0.075 per share, for flow-through proceeds of $381,450 and gross proceeds of $600,450 in this second tranche.
In the first tranche of the Offering, the Company issued 4,505,000 common shares at a price of $0.07 per share, 630,000 Units at a price of $0.07 per Unit and 3,333,333 Flow Through Shares at a price of $0.075 per share, for flow-through proceeds of $250,000 and gross proceeds of $609,450. The press release issued by the Company on June 6, 2016 incorrectly referred to the Company having issued 5,135,000 Units – as set out above, the Company issued 4,505,000 common shares (no warrants included) and 630,000 Units.
In total, including both the first and second tranches of the Offering, the Company issued 4,505,000 common shares at a price of $0.07 per share, 3,760,000 Units at a price of $0.07 per Unit and 8,419,333 flow through shares at a price of $0.075 per share, for flow-through proceeds of $631,450 and gross proceeds of $1,210,000.
Each Unit in the Offering consists of one common share of the Company and one common share-purchase warrant (the “Warrants”); each Warrant entitles the holder to purchase one additional common share of the Company at a price of $CDN 0.10 for a period of twenty-four (24) months after the closing of the Offering.
Finder’s fees consisting of 48,000 finder’s warrants, with each finder warrant exercisable into a common share of the Company at $0.10 per share for a period of twenty-four (24) months and 406,800 finder’s warrants, with each finder warrant exercisable into a common share of the Company at $0.075 per share for a period of thirty-six (36) months were issued as part of the closing of the financing. In accordance with applicable securities legislation, all securities issued in the Private Placement are subject to a statutory hold period of four months and one day. The private placement is subject to final approval by the TSX Venture Exchange.
The gross proceeds of the Flow-Through Shares will be used for flowsheet development work related to the Lochaber Graphite Project, located in southwestern Quebec, and the balance of the net proceeds from the Offering will be used to recommission one or more production circuits at the Matheson Micronization Facility in Matheson, Ontario.
Shares-for-Debt Transaction Completed
The Company further announces that it has completed a shares for debt transaction (“the Shares-for-Debt transaction”) after receiving approval from the TSX Venture Exchange to settle indebtedness with a consultant to the Company.
Pursuant to the Shares-for-Debt Transaction, the Company has issued 250,000 common shares of the Company (the “Shares”) at a deemed price of $0.07 per Share to settle debt in the amount of CDN$17,500 for due diligence services conducted in relation to a potential transaction.
All securities issued in connection with the Shares-for-Debt Transaction will be subject to a statutory hold period of four months plus a day from the date of issuance in accordance with applicable securities law legislation.
About Great Lakes Graphite: Great Lakes Graphite Inc. is an industrial minerals company focused on bringing value-added carbon products to a well-defined market.
The Company is party to an agreement for shared use of a portion of an industrial facility located in Matheson, Ontario owned by Northfil Resources Limited, as well as for supply of high quality natural graphite concentrate (see news release dated 03/23/15), which have positioned Great Lakes Graphite to become an emerging domestic manufacturer and supplier of micronized products to a growing regional customer base where pricing and demand continue to rise.
Further information regarding Great Lakes can be found on the Company’s website at: www.GreatLakesGraphite.com.
Great Lakes Graphite trades with symbol GLK on the TSX Venture Exchange and currently has 109,695,978 shares outstanding.
For more information, please contact:
Paul Ferguson
Chief Marketing Officer
Email: PFerguson@GreatLakesGraphite.com
1-800-754-4510 x106
Paul Gorman
Chief Executive Officer
Email: PGorman@GreatLakesGraphite.com
1-800-754-4510 x109 |
