CALGARY, Alberta – Leucrotta Exploration Inc. (the “Company” or “Leucrotta”) (TSX-V: LXE) is pleased to announce that, further to its press release dated March 15, 2021, it has entered into an amended agreement with a syndicate of underwriters amending the terms of its previously announced C$20 million bought deal financing to increase the size of the offering to C$30.0 million (the “Upsized Offering”).
Under the terms of the Upsized Offering, a syndicate of underwriters, co-led by Haywood Securities Inc., as sole bookrunner, and Echelon Wealth Partners Inc. (collectively, the “Underwriters”) have agreed to purchase, on a bought deal basis, 41,096,000 units of the Company (the “Units”) at a price of C$0.73 per Unit (the “Issue Price”) for gross proceeds to the Company of C$30,000,080.
Each Unit will consist of one common share (a “Common Share”) in the capital of the Company and one-half (1/2) of one common share purchase warrant (each whole common share purchase warrant, a “Warrant”) of the Company. Each Warrant will entitle the holder to acquire one Common Share at a price of C$1.00 for a period of 24 months from the closing date of the Upsized Offering.
In addition, the Company has agreed to grant to the Underwriters an option to purchase up to 10% of the number of Units sold under the Upsized Offering (the “Over-Allotment Option“) at a price per Unit equal to the Issue Price, exercisable at any time, in whole or in part, until the date that is 30 days following the closing of the Upsized Offering. If the Over-Allotment Option is exercised by the Underwriters in full, approximately 4.1 million additional Units will be purchased at the Issue Price for gross proceeds to the Company of C$33,000,088.
The Company intends to use the proceeds from the Upsized Offering to further fund Leucrotta’s initial Mica pad development, other projects and for general corporate purposes. All other terms of the previously announced financing remain unamended.
The Common Shares to be issued under the Upsized Offering will be distributed by way of a short form prospectus in each of the Provinces of Canada, other than Québec. A portion of the Upsized Offering will be conducted on a private placement basis in the United States via Rule 144A to Qualified Institutional Buyers only under the U.S. Securities Act of 1933, as amended and certain other jurisdictions outside of Canada as the Company and the Underwriters may agree on a private placement basis. No prospectus will be required to be filed in any jurisdiction other than the Canadian jurisdictions.
The Upsized Offering is scheduled to close on or about March 31, 2021 and is subject to certain conditions including, but not limited to, the receipt of all necessary regulatory and other approvals including the approval of the TSX Venture Exchange and the securities regulatory authorities.