11:59:07 EDT Fri 14 May 2021
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Lodge Resources Inc
Symbol LDG
Shares Issued 7,425,000
Close 2020-04-14 C$ 0.42
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Lodge Resources completes acquisition of Lemhi project

2020-04-16 14:38 ET - News Release

Mr. Howard Milne reports


Lodge Resources Inc. has completed the acquisition of all of the shares of 1132144 British Columbia Ltd., the parent company of Lower 48 Resources Ltd. and indirectly Lower 48 Resources (Idaho) LLC, which recently acquired the Lemhi gold project, located in Lemhi county, Idaho, United States.

In connection with the acquisition, Lodge issued 33.74 million common shares to the shareholders of Lower 48 in exchange for the common shares of Lower 48 on a one for one basis. The Lodge shares are subject to a voluntary release schedule with 17.5% of the shares released on Closing, 22.5% to be released six months after Closing, 30% to be released nine months after Closing, and the balance to be released twelve months after Closing. A finder's fee of 3,500,000 Lodge shares has been issued to Sub C Holdings Ltd. of Surrey, BC, which are subject to the statutory hold of 4 months plus one day from the Closing.

As a post-closing condition of the acquisition, Lodge has agreed to complete a financing of a minimum of $3,500,000, with proceeds to fund exploration on the Lehmi Project and for working capital.

The Lemhi Project located in the prolific Salmon, Idaho region is comprised of 99 unpatented claims and 11 patented claims subject to certain existing encumbrances, which have over 10,000 meters of historic drilling. Of the 99 unpatented claims, 53 are owned directly by Lower 48 and 46 claims (the "Optioned Claims") are held subject to an option agreement with BHLK-2 LLC ("BHLK"). Lower 48 has the right to earn a 100% interest in the claims subject to the Option Agreement upon making an aggregate of $1,000,000 in payments to BHLK over a seven year period. Upon earning a 100% interest in the Optioned Claims, BHLK will be granted a 2% net smelter return royalty.

Lodge in the coming months will be completing its work program on its Comstock Property, located outside of Merritt, British Columbia in the Nicola Mining District. The Lemhi Project will significantly expand the Company's gold exploration portfolio and there are plans for a work program on the Project this year.

Lodge is pleased to announce that following the acquisition, Mr. Simon Marcotte of Toronto, Ontario, was appointed as the sole director of the Lower 48 companies. Mr. Marcotte has over 20 years of capital market experience. He was a partner of Cormark Securities for four years in institutional equity sales and also sat on their board of directors. Prior to that, Mr. Marcotte was a Director for CIBC World Markets in Montreal for eight years. He holds a BAA from Sherbrooke University and is a Chartered Financial Analyst. He is currently a Director of Arena Minerals and has been involved, either as a director or an officer, with Mason Graphite, Belo Sun Mining, Alderon Iron Ore, Copper One and others.

The Company is conducting a non-brokered private placement of up to 2,300,000 units ("Units") at $0.35 each, for gross proceeds of up to $805,000. Each Unit consists of one common share and one common share warrant exercisable for 12 months at $0.50 per share. There is to be a finder's fee to qualified finders of 6% in cash and 6% in Units, with proceeds of the offering to be for working capital.

Lodge further announces that it has engaged 2686362 Ontario Corporation and, MIDAM Ventures LLC of Coral Gables, Florida, for marketing services.

About the Company

The Company is a mineral exploration company focused on the acquisition, exploration and development of mineral properties in Canada and the USA.

We seek Safe Harbor.

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