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Lodge closes $350,000 IPO, to resume trading Nov. 11

2019-11-08 20:17 ET - News Release

Mr. Howard Milne reports

LODGE RESOURCES INC. COMPLETES INITIAL PUBLIC OFFERING AND LISTS ON THE CSE

Lodge Resources Inc. has completed its initial public offering of common shares in the capital stock of the company. Lodge issued 3.5 million shares that were qualified for distribution under its final prospectus dated Aug. 19, 2019, at a price of 10 cents per share for gross proceeds of $350,000 to purchasers in Alberta, British Columbia and Ontario.

Pursuant to the agency agreement dated May 24, 2019, PI Financial Corp. acted as the agent for the IPO on a commercially reasonable effort basis and received a cash commission, a corporate finance fee and reimbursement of its expenses in connection with the IPO. In addition, PI Financial and members of its selling group received an aggregate of 280,000 compensation options to purchase the same number of shares of the company at a price of 10 cents per share until Nov. 8, 2021.

The net proceeds of the IPO will primarily be used to finance the exploration on the company's Comstock property, consisting of 12 contiguous mining claims covering 664.0111 hectares of land located in the Nicola mining district, British Columbia, on which the company, through its wholly owned subsidiary, has an option to acquire a 100-per-cent interest from Ken Ellerbeck pursuant to an option agreement dated Oct. 31, 2019, subject to a production royalty of 2 per cent of net smelter returns. The net proceeds will also be used for general working capital purposes.

The company now has 7,425,000 shares outstanding, with the directors and officers of Lodge, in aggregate, holding 2.69 million shares. All 2.69 million common shares of the company that were issued to principals of Lodge prior to the closing of the IPO are subject to standard National Policy 46-201 escrow provisions.

The company has received approval to list its common shares on the Canadian Securities Exchange, and its shares were listed for trading on the exchange on Nov. 7, 2019, and halted, pending completion of the IPO. The company expects the shares to resume trading on the exchange on or about Nov. 11, 2019, under the stock symbol LDG.

The directors and officers of Lodge are Howard Milne, the chief executive officer of the company and a director; Steve Mathiesen, the chief financial officer and corporate secretary of the company and a director; and James Place, a director.

Howard D. Milne is a strategist in the area of sales and marketing and possesses experience in the development of private and public companies. Mr. Milne has held various corporate roles, including chief executive officer and vice-president, and has a background in investor relations acting for various listed companies. Mr. Milne played a role in the launch of Victory Ventures Inc. (now Edison Cobalt Corp.) on the TSX Venture Exchange and until September, 2019, was the vice-president of business development and director of Edison Cobalt, a company listed on the TSX Venture Exchange.

Mr. Mathiesen was a corporate and securities lawyer for more than 30 years, and is now a corporate director. Until 2011, he was a partner at the national law firm, McMillan LLP. He is currently on the board of several private companies. He holds the ICDD designation from the Institute of Corporate Directors and is a non-practising member of the Law Society of British Columbia.

Mr. Place is a professional geoscientist (registered in B.C.) with more than 30 years of experience in the aggregate, heavy construction and engineering fields. He has worked on all phases of mineral projects from exploration and permitting through to testing, development, marketing, production and reclamation, primarily in western North America. Mr. Place has held positions with public companies (Belmont Resources Inc. and Highbank Resources Ltd.), government, engineering companies and environmental consulting companies. Included are the B.C. Ministry of Transportation; Levelton Consultants Ltd. of Richmond, B.C.; Uplands Resources Inc. as vice-president, exploration and quality control; and ECL Environment Solutions as senior geologist. Mr. Place received a bachelor of science degree in physical geography from the University of Victoria (B.C.) in 1983. Mr. Place has been a registered professional geoscientist with the Association of Professional Engineers and Geoscientists of British Columbia since 1992.

Additional information about the company, the IPO and the Comstock property can be found in the company's final long-form prospectus dated Aug. 19, 2019, as filed on SEDAR.

About Lodge Resources Inc.

The company is a mineral exploration company focused on the acquisition, exploration and development of the Comstock property, located in the Nicola mining district, British Columbia.

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