Lucky Announces Corporate Update
Lucky Minerals Inc. (LKY) has announced strategic amendments to its option agreement to acquire a 100% interest in the Prudhomme Property in Northern Quebec. The changes primarily restructure the vendor framework to consolidate rights under Critical Mineral Properties (CMP), a company owned by Yoland Labrie. Additionally, the amendments accelerate share issuance obligations, clarify termination rights regarding trading suspensions, and define "Triggering Events" that would accelerate payment obligations or trigger a 20% penalty on corporate transactions. The company also detailed the use of proceeds from a concurrent private placement, allocating $600,000 specifically for the exploration of the Prudhomme Property.
Two amendments were executed to facilitate these changes: a June Amendment effective June 30, 2026, and an October Amendment dated October 8, 2026, which is effective upon TSXV approval. Under the vendor consolidation terms, Yoland Labrie, Patricia Lafontaine, and other claim registrants irrevocably assigned all rights, titles, and interests in the Option Agreement to CMP. CMP is now the sole legal and beneficial holder of the 109 mineral claims comprising the Prudhomme Property.
The revised share issuance terms require Lucky Minerals to issue 3,500,000 common shares with an aggregate deemed value of $350,000 on closing. An additional 12 and 24 months post-closing, shares with an aggregate deemed value of $400,000 are to be issued in quarterly installments. Pricing for these shares is based on the 20-day VWAP on TSXV, less a 20% discount, with a floor price of $0.10 per share. The aggregate number of shares issuable to satisfy the $750,000 obligation may not exceed 7,500,000 common shares.
Regarding termination rights, the option may be terminated by written notice if Lucky’s shares are subject to a cease trade order or suspension for more than 60 consecutive calendar days. The agreement also defines "Triggering Events," which include the acquisition of more than 50% voting securities by a third party, a reorganization or merger where existing shareholders own less than 50% of the resulting entity, or the sale of substantially all assets or rights in the Property. Upon a Triggering Event, Lucky must pay all amounts payable under the Option Agreement within 15 days and pay an additional 20% of the aggregate value of consideration received in the triggering transaction.
A draft Gross Metal Royalty (GMR) agreement will become effective upon exercise of the option. Key terms include a 2.0% GMR, a $2,000,000 buy-down right for 1%, and a first-ranking Quebec Deed of Hypothec. This is subject to TSXV approval.
In conjunction with the amendments, Lucky Minerals raised approximately $3,050,000 in a concurrent private placement. The proceeds are allocated as follows: $191,100 for finder’s fees, $1,620,000 for general and administrative expenses and liability obligations, and $600,000 for Prudhomme property exploration, with the remainder designated for general working capital. Officers subscribed for 500,000 non-FT Units in this placement. This constitutes a related party transaction under MI 61-101, with exemptions relied upon for valuation and minority shareholder approval.