Lafleur Minerals arranges $7-million private placement

Executive Summary

• Lafleur Minerals Inc. has launched a brokered private placement of gold-linked convertible notes with a principal amount ranging from $4 million to $7 million to finance the restart of its Beacon gold mill and for general corporate purposes.
• The notes carry a 12% annual interest rate, mature on or around November 30, 2028, and are convertible into common shares at $0.80 per share.
• The financing includes a unique gold-linked premium structure where principal payments are adjusted based on the London Gold Fix price exceeding $4,000 USD/oz, and FMI Securities Inc. is acting as the lead agent.

Key Details

• Financing Structure: Brokered private placement of gold-linked convertible notes.
• Principal Amount: Minimum $4 million; Maximum $7 million.
• Use of Proceeds: General corporate purposes, operations, equipment, and expenses related to the restart of the Beacon gold mill (a wholly-owned project near Val d'Or, Quebec).
• Conversion Terms: Convertible into common shares at a price of $0.80 per share at the holder's option.
• Interest Rate: 12% per annum on the aggregate principal amount, calculated and payable semi-annually.
• Maturity Date: On or around November 30, 2028.
• Principal Repayment Schedule: Annual reduction of principal commencing January 1, 2027, ending with the final payment on November 30, 2028.
• Gold Premium Mechanism: On each principal payment date, the company pays a premium equal to the number of deposited ounces delivered into escrow for the quarter multiplied by the amount by which the current gold price (London Gold Fix per ounce in USD as of the 15th of the payment month) exceeds $4,000 USD.
• Agent Fees:
  • Cash fee of 7.0% of gross proceeds (reduced to 4.0% for "president's list" purchasers).
  • Broker warrants equal to 7.0% of the number of notes sold (reduced to 4.0% for "president's list" purchasers).
• Warrant Terms: Exercise price of $0.80; exercisable for two years from issuance.
• Overallotment Option: The agent has the option to sell up to an additional $750,000 of notes to cover overallotments, exercisable up to 48 hours prior to closing.
• Statutory Hold Period: Four months and one day following issuance.
• Qualified Person: Louis Martin, PGeo (OGQ), Exploration Manager and Technical Adviser.

Notable Quotes

• No direct quotes from the CEO or President were included in the provided text.