Lodge Resources Inc. Completes Acquisition of Lehmi Gold Project
Vancouver, British Columbia--(Newsfile Corp. - April 16, 2020) - April 16, 2020 - Lodge Resources Inc. (CSE: LDG) (FSE: 3WU) ("Lodge" or the "Company") announces that it today completed (the "Closing") the acquisition of all of the shares of 1132144 British Columbia Ltd., the parent company of Lower 48 Resources Ltd. and indirectly Lower 48 Resources (Idaho) LLC (collectively, "Lower 48"), which recently acquired the Lemhi Gold Project located in Lemhi County, Idaho, USA (the "Lemhi Project").
In connection with the acquisition, Lodge issued 33,740,000 common shares to the shareholders of Lower 48 in exchange for the common shares of Lower 48 on a one for one basis. The Lodge shares are subject to a voluntary release schedule with 17.5% of the shares released on Closing, 22.5% to be released six months after Closing, 30% to be released nine months after Closing, and the balance to be released twelve months after Closing. A finder's fee of 3,500,000 Lodge shares has been issued to Sub C Holdings Ltd. of Surrey, BC, which are subject to the statutory hold of 4 months plus one day from the Closing.
As a post-closing condition of the acquisition, Lodge has agreed to complete a financing of a minimum of $3,500,000, with proceeds to fund exploration on the Lehmi Project and for working capital.
The Lemhi Project located in the prolific Salmon, Idaho region is comprised of 99 unpatented claims and 11 patented claims subject to certain existing encumbrances, which have over 10,000 meters of historic drilling. Of the 99 unpatented claims, 53 are owned directly by Lower 48 and 46 claims (the "Optioned Claims") are held subject to an option agreement with BHLK-2 LLC ("BHLK"). Lower 48 has the right to earn a 100% interest in the claims subject to the Option Agreement upon making an aggregate of $1,000,000 in payments to BHLK over a seven year period. Upon earning a 100% interest in the Optioned Claims, BHLK will be granted a 2% net smelter return royalty.
Lodge in the coming months will be completing its work program on its Comstock Property, located outside of Merritt, British Columbia in the Nicola Mining District. The Lemhi Project will significantly expand the Company's gold exploration portfolio and there are plans for a work program on the Project this year.
Lodge is pleased to announce that following the acquisition, Mr. Simon Marcotte of Toronto, Ontario, was appointed as the sole director of the Lower 48 companies. Mr. Marcotte has over 20 years of capital market experience. He was a partner of Cormark Securities for four years in institutional equity sales and also sat on their board of directors. Prior to that, Mr. Marcotte was a Director for CIBC World Markets in Montreal for eight years. He holds a B.A.A. from Sherbrooke University and is a Chartered Financial Analyst. He is currently a Director of Arena Minerals and has been involved, either as a director or an officer, with Mason Graphite, Belo Sun Mining, Alderon Iron Ore, Copper One and others.
The Company is conducting a non-brokered private placement of up to 2,300,000 units ("Units") at $0.35 each, for gross proceeds of up to $805,000. Each Unit consists of one common share and one common share warrant exercisable for 12 months at $0.50 per share. There is to be a finder's fee to qualified finders of 6% in cash and 6% in Units, with proceeds of the offering to be for working capital.
Lodge further announces that it has engaged 2686362 Ontario Corporation and, MIDAM Ventures LLC of Coral Gables, Florida, for marketing services.
The Company's shares are now listed for trading on the Frankfurt Stock Exchange under symbol "3WU".
About the Company:
The Company is a mineral exploration company focused on the acquisition, exploration and development of mineral properties in Canada and the USA.
For further information, please contact Howard Milne, Chief Executive Officer of Lodge, at (604) 377-8994, email@example.com
Forward Looking Statements: This press release contains "forward‐looking information or statements" within the meaning of Canadian securities laws, which may include, but are not limited to statements relating to its future business plans. All statements in this release, other than statements of historical facts, that address events or developments that the Company expects to occur, are forward-looking statements. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects", "plans", "anticipates", "believes", "intends", "estimates", "projects", "potential" and similar expressions, or that events or conditions "will", "would", "may", "could" or "should" occur. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results may differ from those in the forward-looking statements. Such forward-looking information reflects the Company's views with respect to future events and is subject to risks, uncertainties and assumptions. The Company does not undertake to update forward‐looking statements or forward‐looking information, except as required by law.
Neither Canadian Securities Exchange nor its regulation services provider accepts responsibility for the adequacy or accuracy of this release.
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