Lomiko Metals Inc. recently announced its plan to settle a portion of its outstanding debts totaling $90,000 Canadian dollars by issuing 545,455 common shares at a deemed value of $0.165. The creditors involved in this debt settlement are insiders of the company. However, the completion of this shares-for-debts transaction is subject to approval from the TSX Venture Exchange. It is important to note that all common shares issued as part of this settlement will be subject to a hold period of four months plus one day from the date of issuance.
Lomiko Metals Inc. is a company that holds mineral interests in the La Loutre graphite development located in southern Quebec. The La Loutre project site falls within the territory of the Kitigan Zibi Anishinabeg (KZA) First Nation, which is a part of the Algonquin Nation. This territory is situated within the Outaouais and Laurentides regions, approximately 180 kilometers northwest of Montreal. The property comprises a single, continuous block with 76 mineral claims covering a total area of 4,528 hectares (45.3 km2). The rocks underlying the property belong to the Grenville Province of the Precambrian Canadian Shield, which is known for favorable conditions for the formation of coarse-grained, flake-type graphite mineralization during high-temperature metamorphism.
In May 2023, Lomiko Metals published an updated Mineral Resource Estimate (MRE) for the La Loutre Project. The report, prepared by InnovExplo, estimated 64.7 million tonnes of Indicated Mineral Resources with an average grade of 4.59% Cg per tonne, equivalent to 3.0 million tonnes of graphite. This represented a significant increase of 184% in tonnage compared to the previous estimate. Additionally, the report identified 17.5 million tonnes of Inferred Mineral Resources with an average grade of 3.51% Cg per tonne, totaling 0.65 million tonnes of graphite. The increase in the Indicated Mineral Resources was attributed to the results of the 2022 drilling campaign, which also led to the refinement of the deposit and structural models.
The Mineral Resource Estimate assumed a graphite price of US$1,098.07 per tonne and a cut-off grade of 1.50% Cg. This updated estimate reflects the ongoing exploration and development efforts at the La Loutre Project, highlighting the potential for significant graphite mineralization in the area.
Overall, the debt settlement process through the issuance of common shares and the updated Mineral Resource Estimate underscore Lomiko Metals’ commitment to advancing its La Loutre graphite project and creating value for its stakeholders. The company’s strategic focus on mineral exploration and development positions it well for future growth and success in the graphite market.