VANCOUVER, British Columbia, June 30, 2023 (GLOBE NEWSWIRE) -- Lomiko Metals (TSXV:LMR) (OTCQB:LMRMF) (FSE:DH8C), focused on critical minerals in Quebec, recently announced two non-brokered private placements. The company plans to raise up to $2.1 million from the placement of up to 70 million regular units priced at $0.03 per unit, with each unit consisting of one share and one warrant, with the warrant exercisable at $0.05 for 60 months. The company also plans to raise up to $500,000 from the placement of up to 12,500,000 flow-through units priced at $0.04 per unit, with each unit consisting of one share and one warrant, with the warrant exercisable at $0.06 for 24 months. The shares are trading at $0.025.
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Belinda Labatte, CEO, stated: “Lomiko has accomplished many milestones in the last 18 months, and with this financing, it is looking to advance several pre-feasibility level initiatives within its portfolio of projects. In addition, we are pleased that the Company was selected to participate in the Canada-UK Trade mission from June 25 to 30 to develop new connections with potential partners. Chief Operating Officer Gordana Slepcev will be attending. Also, as Lomiko Metals wishes to work with the universities of Quebec on projects and programs focused on energy transition, we are delighted to participate in the study “Tracing the geological processes controlling the formation of high-grade graphite deposits in the Grenville Province of Central and Western Quebec.” This study is to last 36 months in partnership with the Department of Geology and Geological Engineering of Laval University and the Center Eau Terre Environnement of the National Institute for Scientific Research (INRS).”
Net proceeds from the regular offering will be used on the graphite and lithium properties in addition to general working capital requirements. The company’s main project is its advanced stage La Loutre Graphite Project, located 180 kilometres northwest of Montreal. The company has another seven early-stage graphite properties in southern Quebec.
La Loutre consists of one large, continuous block with 76 mineral claims totalling 4,528 hectares, is underlain by rocks belonging to the Grenville Province of the Precambrian Canadian Shield. The Grenville was formed under conditions that were very favourable for the development of coarse-grained, flake-type graphite mineralization from organic-rich material during high-temperature metamorphism.
In April, 2023, Lomiko published an Updated Mineral Resource Estimate (MRE) which estimated 64.7 million tonnes of Indicated Mineral Resources averaging 4.59% Cg per tonne for 3.0 million tonnes of graphite, a tonnage increase of 184%. Indicated Mineral Resources increased by 41.5 million tonnes as a result of the 2022 drilling campaign, from 17.5 million tonnes in 2021.
Pre-feasibility metallurgical test work achieved excellent results and demonstrated that an optimized flotation plant flow sheet can achieve 94.7% graphite recovery and average 98.7% graphitic carbon purity. The larger flakes are mostly used in the higher value industrial applications, with the -100 mesh most commonly used in battery production.
The funding will continue the metallurgical testing, value-added testing, and battery trials.
Net proceeds from the flow-through offering will be used at the recently acquired Carmin Graphite project, the Laurentides regional graphite exploration program and the Bourier Lithium property exploration program.
The Carmin natural flake graphite property, adjacent to La Loutre, has historical mineral resources of in-situ graphite.
Within its exploration portfolio, the company has an exploration proposal to explore further its Bourier lithium property located on the prolific Nemaska lithium belt, to obtain its 49% ownership position with Critical Elements. The property, which covers 203 claims for a total ground position of 10,252 hectares, boasts other lithium deposits and known lithium mineralization. Analytical results from 2021 field work featured high-grade values for zinc and tungsten and anomalies in lithium-tantalum-cesium and gold. A total of 15 high to moderate prospective lithium targets were identified.
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