Lomiko Metals Provides Update on its Circular and Announces Release of Year-End Financials

Rhea-AI Summary

Lomiko Metals Inc. (TSX-V: LMR, OTC: LMRMF) has announced the extension of closing for the sale of its subsidiary, Lomiko Technologies Inc., to Promethieus Technologies Inc. This follows a management circular dated November 4, 2021. The original Share Purchase Agreement was entered on July 31, 2019, and amended multiple times. The transaction has not closed due to Brexit and COVID-19 impacts. The company is also focused on advancing its La Loutre graphite project and Bourier lithium project while providing year-end financials for July 31, 2021.

Positive

• Company is progressing with the La Loutre graphite project, moving from PEA to PFS stage.
• Continued exploration of the Bourier lithium project supports growth in Canada's critical mineral supply.

Negative

• The sale of Lomiko Technologies has been repeatedly delayed since 2019 due to external factors like Brexit and COVID-19.

MONTREAL--(BUSINESS WIRE)-- Lomiko Metals Inc. (TSX-V: LMR, OTC: LMRMF, FSE: DH8C) ("Lomiko Metals” or the “Company”) announces that further to its management information circular dated November 4, 2021 and filed on SEDAR (the “Circular”), it wishes to provide more information to its shareholders regarding the extension of closing of the sale of the Company’s wholly owned subsidiary, Lomiko Technologies Inc., in accordance with the Business Corporations Act (BC), to Promethieus Technologies Inc.

The Circular mentions that the Share Purchase Agreement was entered into on July 31, 2020. The Company would like to correct that information, as the agreement was actually entered into on July 31, 2019. Shareholders originally approved the transaction in 2019 at a shareholders meeting. The Share Purchase Agreement was subsequently amended with amending agreements dated December 10, 2019, June 20, 2020 and October 5, 2021. Due to Brexit and Covid-19, the transaction never closed, hence the reason shareholders are requested to consider and to approve a special resolution authorizing another extension of the Share Purchase Agreement in the Circular for a new closing date of November 30, 2022.

The independent directors that approved the Share Purchase Agreement in 2019 and the extensions in 2020 were Julius Galik and Gabriel Erdelyi. Mr. Galik resigned as a director effective December 17, 2020. Mr. Gregg Jensen replaced Mr. Galik as independent director overseeing the transaction and has approved the Circular. The independent directors have determined that the economics of the transaction remained the same since the entering into of the Share Purchase Agreement in 2019.

For more information on the transaction, please refer to the Circular. The Company would also like to remind shareholders that its Annual General Special Meeting will be held on Monday December 6, 2021 at 11:00 a.m. (Eastern Time).

Year-End Financials

The Company announces that it has filed its July 31st, 2021, year-end financial statements and Management Discussion and Analysis on www.sedar.com.

Lomiko Metals is dedicated to supporting the de-carbonization of our economy and continues to be committed to and actively working towards progressing the La Loutre graphite project from Preliminary Economic Assessment (“PEA”) to Pre-Feasibility Stage (“PFS”) stage and moving forward with continued exploration of the Bourier lithium project to support the growth and development of Canada’s critical mineral supply chain.

About Lomiko Metals Inc.

Lomiko Metals has a new vision and a new strategy in new energy. Lomiko represents a company with purpose: a people-first company where we can manifest a world of abundant renewable energy with Canadian and Quebec critical minerals for a solution in North America. Our goal is to create a new energy future in Canada where we will grow the critical minerals workforce, become a valued partner and neighbour with the communities in which we operate, and provide a secure and responsibly sourced supply of critical minerals.

The Company holds a 100% interest in its La Loutre graphite development in southern Quebec. The La Loutre project site is located within the Kitigan Zibi Anishinabeg (KZA) First Nations territory. The KZA First Nations are part of the Algonquin Nation and the KZA territory is situated within the Outaouais and Laurentides regions.​ Located 180 kilometres northwest of Montreal, the property consists of 1 large, continuous block with 42 minerals claims totaling 2,509 hectares (25.1km²). Lomiko Metals published a Preliminary Economic Assessment (“PEA”) on September 10, 2021 which indicated the project had a 15 year mine life. This report was prepared as National Instrument 43-101 Technical Report for Lomiko Metals Inc. by Ausenco Engineering Canada Inc., Hemmera Envirochem Inc., Moose Mountain Technical Services, and Metpro Management Inc., collectively the Report Authors. The Bourier project site is located near Nemaska Lithium and Critical Elements south-east of the Eeyou Istchee James Bay territory in Quebec which consists of 203 claims, for a total ground position of 10,252.20 hectares (102.52 km2), in Canada’s lithium triangle near the James Bay region of Quebec that has historically housed lithium deposits and mineralization trends.

Mr. Mike Petrina, Project Manager, a Qualified Person under National Instrument 43-101 – Standards of Disclosure for Mineral Projects, has reviewed and approved the technical disclosure in this news release.

For more information on Lomiko Metals, review the website at www.lomiko.com, contact Belinda Labatte at 647-402-8379 or email: info@lomiko.com.

Cautionary Note Regarding Forward-Looking Information

This news release contains "forward-looking information" within the meaning of the applicable Canadian securities legislation that is based on expectations, estimates, projections and interpretations as at the date of this news release. The information in this news release about the Company; and any other information herein that is not a historical fact may be "forward-looking information" (“FLI”). All statements, other than statements of historical fact, are FLI and can be identified by the use of statements that include words such as "anticipates", "plans", "continues", "estimates", "expects", "may", "will", "projects", "predicts", “proposes”, "potential", "target", "implement", “scheduled”, "intends", "could", "might", "should", "believe" and similar words or expressions. FLI in this new release includes, but is not limited to: the Company’s objective to become a responsible supplier of critical minerals, exploration of the Company’s projects, including expected costs of exploration and timing to achieve certain milestones, including timing for completion of exploration programs; the Company’s ability to successfully fund, or remain fully funded for the implementation of its business strategy and for exploration of any of its projects (including from the capital markets); any anticipated impacts of COVID-19 on the Company’s business objectives or projects, the Company's financial position or operations, and the expected timing of announcements in this regard. FLI involves known and unknown risks, assumptions and other factors that may cause actual results or performance to differ materially. This FLI reflects the Company’s current views about future events, and while considered reasonable by the Company at this time, are inherently subject to significant uncertainties and contingencies. Accordingly, there can be no certainty that they will accurately reflect actual results. Assumptions upon which such FLI is based include, without limitation: current market for critical minerals; current technological trends; the business relationship between the Company and its business partners; ability to implement its business strategy and to fund, explore, advance and develop each of its projects, including results therefrom and timing thereof; the ability to operate in a safe and effective manner; uncertainties related to receiving and maintaining exploration, environmental and other permits or approvals in Quebec; any unforeseen impacts of COVID-19; impact of increasing competition in the mineral exploration business, including the Company’s competitive position in the industry; general economic conditions, including in relation to currency controls and interest rate fluctuations.

The FLI contained in this news release are expressly qualified in their entirety by this cautionary statement, the “Forward-Looking Statements” section contained in the Company’s most recent management’s discussion and analysis (MD&A), which is available on SEDAR at www.sedar.com, and on the investor presentation on its website. All FLI in this news release are made as of the date of this news release. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information. The Company does not undertake to update or revise any such forward-looking statements or forward-looking information contained herein to reflect new events or circumstances, except as may be required by applicable securities laws.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release. No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.

On behalf of the Board,

Belinda Labatte

CEO and Director, Lomiko Metals Inc.

View source version on businesswire.com: https://www.businesswire.com/news/home/20211129005794/en/

Belinda Labatte

647-402-8379

info@lomiko.com

 

Source: Lomiko Metals Inc.

FAQ

What is the latest update on Lomiko Metals' acquisition deal with Promethieus Technologies?

Lomiko Metals has extended the closing date for the sale of Lomiko Technologies to Promethieus Technologies, originally agreed upon in 2019, with a new closing date set for November 30, 2022.

When will Lomiko Metals hold its Annual General Special Meeting?

The Annual General Special Meeting for Lomiko Metals is scheduled for December 6, 2021, at 11:00 a.m. Eastern Time.

What projects is Lomiko Metals focusing on following its year-end financial reports?

Lomiko Metals is advancing its La Loutre graphite project and exploring the Bourier lithium project, aiming to enhance the critical minerals supply chain in Canada.