Lux Metals Announces $2,500,000 Private Placement, Debt Settlement and Market Maker Agreement

Executive Summary

• Lux Metals Corp. announced a private placement of 12.5 million units at $0.20 per unit, targeting gross proceeds of $2.5 million for exploration and working capital.
• The company will settle $107,000 of non‑arm’s‑length debt by issuing 535,000 shares at a deemed price of $0.20 per share.
• Lux retained Venture Liquidity Providers Inc. to provide market‑making services, paying a fee of $5,000 per month for three months.

Key Details

• Private Placement Structure – 12,500,000 units; each unit = 1 common share + 1 transferable warrant (exercisable into an additional share at $0.40 for two years).
• Pricing & Proceeds – Unit price $0.20 → total gross proceeds of $2,500,000.
• Acceleration Clause – If the TSXV share price reaches ≥ $0.60 for ten consecutive trading days, warrants may expire 30 calendar days after notice (subject to company discretion).
• Regulatory Holds – All securities issued are subject to a hold period expiring four months and one day from issuance.
• Use of Proceeds – Funds will be allocated to exploration costs and general working capital.
• Finder’s Fees – Company may pay cash and/or non‑transferable warrants as finder’s fees, consistent with TSXV policies.
• Debt Settlement – $107,000 debt to non‑arm’s‑length parties settled by issuing 535,000 shares at a deemed price of $0.20 per share; same hold period applies.
• Market‑Making Arrangement – Venture Liquidity Providers Inc. (VLP) engaged via broker W.D. Latimer Co. Ltd. to maintain an orderly market for Lux’s shares.
• Service Fee – $5,000 per month for three months; agreement terminable by either party at any time.
• Closing Timeline – Placement expected to close “as soon as practicable” pending regulatory approvals (TSXV and other required filings).

Notable Quotes

• “The gross proceeds from the issuance of the Units will be used for exploration costs and general working capital.” – Carl Ginn, President & CEO.