Mr. Shayne Taker
LFNT RESOURCES CORP. ANNOUNCES CLOSING OF NON-BROKERED PRIVATE PLACEMENT OFFERING OF FLOW-THROUGH COMMON SHARES
Further to its news release dated July 27, 2023, LFNT Resources Corp. has closed the non-brokered private placement offering of common shares to be issued on a flow-through basis pursuant to the Income Tax Act (Canada). The company has issued 833,332 flow-through shares at an issue price of 30 cents per flow-through share for gross proceeds of $250,000.
The company intends to use the proceeds from the offering for the exploration and advancement of the company's properties in British Columbia and/or Saskatchewan.
Proceeds from the sale of flow-through shares will be used to incur Canadian exploration expenses as defined in Subsection 66.1(6) of the income tax act and flow-through mining expenditures as defined in Subsection 127(9) of the income tax act. Such proceeds will be renounced to the subscribers with an effective date not later than Dec. 31, 2023, and incurred no later than Dec. 31, 2024, in the aggregate amount of not less than the total amount of gross proceeds raised from the issue of flow-through shares.
There were no finders' fees paid on the gross proceeds in connection with the offering.
1238723 B.C. Ltd., a company controlled by Shayne Taker, chief executive officer and director of the company, has purchased 175,000 flow-through shares. Mr. Taker's indirect participation in the private placement through 1238723 B.C. is a related party transaction within the meaning of Multilateral Instrument 61-101. The company is relying on the exemptions from the valuation and minority shareholder approval requirements of MI 61-101 contained in sections 5.5(c) (Distribution of Securities for Cash) and 5.7(1)(b) (Fair Market Value Not More Than $2.5-million) of MI 61-101 in respect of such participation. The securities were distributed for cash, there is no undisclosed material information by the company, the fair market value of the securities does not exceed $2.5-million, the company has at least one independent director and all independent directors of the company approved the issuance of securities.
The securities issued in connection with the offering are subject to the Canadian Securities Exchange approval and all securities are subject to a statutory hold period until Dec. 23, 2023.
After the issuance of the flow-through shares, the company has a total of 23,150,333 common shares issued and outstanding.
About LFNT Resources Corp.
LFNT Resources is a British Columbia based mineral exploration company focused on the development of assets containing battery metals, base metals and precious metals. LFNT holds an option in the heart of British Columbia's renowned Cariboo mining district on the 1,900-hectare SkyFire property, which is nestled between Williams Lake and 100 Mile House. Infrastructure and strong labour communities are within reach.
The company also has an option on the 9,759-hectare Sudbury project in the La Ronge region of Saskatchewan and may evaluate acquisitions of other mineral exploration assets and opportunities. LFNT's common shares are listed and trading on the CSE under trading symbol LFNT.
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