LaFleur Minerals launches $4-7 million gold-linked convertible note financing

LaFleur Minerals Inc. (CSE: LFLR) announced a brokered private placement of gold-linked convertible notes to raise between $4 million and $7 million for restarting operations at its Beacon Gold Mill in Quebec.

The convertible notes carry a 12% annual interest rate and mature on November 30, 2028. Note holders can convert their securities into common shares at $0.80 per share. The company will reduce the principal amount annually starting January 1, 2027.

Each note includes a gold premium feature tied to gold prices above $4,000 per ounce. On annual payment dates, the company will pay an additional premium calculated by multiplying deposited ounces by any amount the London Gold Fix price exceeds $4,000.

FMI Securities Inc. serves as lead agent and sole bookrunner for the financing. The agent will receive a 7% cash fee and broker warrants equal to 7% of notes sold, with both reduced to 4% for President's List purchasers. The broker warrants have an $0.80 exercise price and expire two years after issuance.

The agent holds an option to sell an additional $750,000 of notes to cover over-allotments, exercisable up to 48 hours before closing.

Proceeds will fund general corporate purposes and expenses related to restarting the Beacon Gold Mill, located near Val d'Or, Quebec in the Abitibi greenstone belt. The facility can process over 750 tonnes per day and holds full permits for operation.

All securities from the financing are subject to a four-month and one-day statutory hold period under Canadian securities laws. The securities have not been registered under U.S. securities laws and may not be offered or sold in the United States without registration or an applicable exemption.

You May Also Be Interested In

• Electra Therapeutics files for proposed IPO
• FDA approves Takeda's rusfertide for polycythemia vera treatment
• Nomura/Instinet Upgrades Zeon Corp (4205:JP) (ZEOOF) to Buy