Further to the announcement of May 12, 2017, LeadFX Inc. (the “Company” or “LeadFX”) (TSX: LFX) provides additional details regarding its previously announced arm’s length transaction (“Transaction”) with InCoR Technologies Limited and InCoR Energy Materials Limited (together “InCoR”) related to the transfer of lead refining technologies to LeadFX for the initial development of a lead refinery at the Company’s Paroo Station Mine (“Paroo Station”). Except as described herein, the terms of the Transaction remain unchanged from the previous announcement.
As quoted in the press release:
The Agreement provides that LeadFX will issue two separate common share purchase warrants (the “Warrants”) to InCoR to acquire (in the aggregate) up to 28,750,000 common shares in the capital of LeadFX (“Common Shares”). The Warrants will be exercisable, for no additional consideration, on and subject to the occurrence of the following triggering events:
- 80% of the Warrants (23,000,000 Common Shares) (the “Stage 2 Warrant”) are to be exercisable only on completion of a successful DFS. The DFS will be deemed to be completed and successful if and only if it meets strict criteria and delivers a superior economic outcome for LeadFX, including (i) a demonstrable Paroo Station life of mine of no less than 10 years, and (ii) Paroo Station life of mine gross operating cash flows minus refinery capital expenditures of no less than US$450 million; and
- the remaining 20% of the Warrants (5,750,000 Common Shares) (the “Stage 3 Warrant”) are to be exercisable only upon receipt of definitive environmental approvals by LeadFX to construct a lead refinery at Paroo Station.
The aggregate number of Common Shares to be issued after giving effect to the exercise of the Warrants represents approximately 75.2% of the Common Shares currently issued and outstanding (on a non-diluted basis) prior to giving effect to the Transaction. As of the date hereof, InCoR holds nil Common Shares in the Company.