LaFleur unveils financing plans for Quebec gold assets
LaFleur Minerals Inc. [LFLR-CSE, LFLRF-OTCQB] said it has entered into an arm’s length agreement with FMI Securities Inc, an Ontario-registered Exempt Market Dealer, and FM Global Markets Inc., a FINRA-registered U.S. dealer. Under the agreement, the agents will act as exclusive corporate finance advisors and placement agents to LaFleur for a proposed secured debt financing of $5.0 million to fund the restarting gold production at the Beacon Gold Mine in Val d’Or, Quebe.
The term of the engagement is 180 days and may be terminated earlier by either party with written notice.
The company has also announced details of a non-brokered private placement offering of up to 6.0 million units priced at 48 cents per unit for gross proceeds of $2.9 million. Each unit will consist of one common share and one common share purchase warrant, entitling the holder to purchase one additional common share for 75 cents at any time on or before 24 months from the date. The warrants will be subject to an accelerated expiry in the event that the common shares trade at or above 90 cents for 14 consecutive trading days at any time after closing.
Gross proceeds from the LIFE offering are earmarked for advancement of exploration at the company’s Swanson Gold Project in Quebec, and for operational purposes at the Beacon Mill.
In addition, the company plans to offer up to 3.75 million charity flow-through units priced at 69 cents per Charity FT unit for gross proceeds of $2.58 million. Each Charity FT unit will consist of one common share to be issued as a flow-through share within the meaning of the Income Tax Act (Canada) and one warrant. The warrants will have the same terms as the warrants included in the units to be issued in the life offering.
Proceeds will be used to incur “Canadian Exploration Expenses” at the Swanson Gold Project.
The shares were unchanged at 48 cents, Wednesday and trade in a 52-week range of 79 cents and 11.5 cents.
LaFleur has said it is on the cusp of becoming a gold producer in a buoyant bullion market after acquiring the Beacon Mill via a receivership sale.
The $1 million acquisition puts LaFleur in a position not only to process ore from its own nearby Swanson gold property, where the company is finalizing a preliminary economic assessment (PEA) to evaluate the economics of an open pit mining scenario, but also to strike custom milling agreements with other companies holding gold deposits in the region.
LaFleur said it has developed a comprehensive mill restart plan, which includes improvements of $3.8 million for mill equipment and maintenance, and tailings storage facility repairs of $1.8 million. The company said it anticipates achieving full production at Beacon by early 2026.
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