McFarlane Lake Mining arranges $15 million for funding exploration projects
McFarlane Lake Mining Ltd. [CSE: MLM; OTCQB: MLMLF; FRA: W2Z] has entered into an agreement with ATB Cormark Capital Markets, as lead underwriter and sole bookrunner, on behalf of a syndicate of underwriters in connection with a bought deal private placement of 20,953,000 common shares of the company that will qualify as flow-through (FT) shares (within the meaning of Subsection 66(15) of the Income Tax Act (Canada)), at a price of 52.5 cents per FT share, for gross proceeds of $11,000,325; and 10,527,000 common shares of the company, at a price of 38 cents per HD (hard-dollar) share, for gross proceeds of $4,000,260, for aggregate gross proceeds to the company of $15,000,585.
In addition, the company has granted the underwriters an option to purchase up to an additional 5,921,284 HD shares at the HD offering price for additional gross proceeds of up to $2,250,088, on the same terms and conditions, by giving written notice of the exercise of the option, or a part thereof, to the company at any time up to 48 hours prior to the closing date (as defined below).
The company will use an amount equal to the gross proceeds received by the company from the sale of the FT shares, pursuant to the provisions in the Income Tax Act (Canada), to incur eligible Canadian exploration expenses that qualify as flow-through mining expenditures related to the company’s Juby Project in Ontario. The company intends to use the net proceeds of the offered HD shares for working capital and general corporate purposes.
The offering is expected to close on or about September 9, 2026, or such other date as the company and the underwriters may agree and is subject to certain conditions, including, but not limited to, the receipt of all necessary regulatory and other approvals.
McFarlane Lake is a gold exploration company focused on exploring and advancing the Juby gold project near Gowganda, Ontario. The Juby gold project has a NI 43-101 Inferred resource of 5.06 million oz gold at 0.87 g/t contained in 180.67 million tonnes and Indicated resources of 1.14 million oz gold at 0.95 g/t contained in 37.17 million tonnes, using a long-term gold price of US$3,600/oz. These resources have an effective date of August 14, 2026. Sensitivities performed at higher gold prices – US$4,600/oz gold – the deposit holds 5.40 million inferred ounces at 0.85 g/t gold and 1.20 million indicated ounces at 0.93 g/t gold.
The full technical report on these resources will be issued within 45 days of the company’s MRE announcement. The technical report will be issued by BBA E&C Inc., an independent organization from McFarlane Lake Mining. McFarlane is currently planning to perform exploration drilling on the Juby gold project, as well as other study work to advance the development of the property.
In addition to the Juby gold project, McFarlane holds a portfolio of 100%-owned gold assets across Ontario, including the past-producing McMillan gold mine and Mongowin properties, located approximately 70 km west of Sudbury, and the Michaud/Munro properties, located 115 km east of Timmins. McFarlane is a reporting issuer in Ontario, British Columbia and Alberta.