Lomiko Metals Provides Update on Arrangement With Global Battery Materials, Loan Facility and Funding of the Yellow Fox Project
Lomiko’s $0.13 acquisition deal gains traction despite cash crunch and low support hurdles.
Lomiko Metals Inc. provided an update on its proposed acquisition by Global Battery Materials Corp. (GBM), confirming that shareholder support for the deal has increased to approximately 22.9% of issued and outstanding shares. The company also clarified the terms of a concurrent senior secured bridge loan facility from GBM, which carries an 8.0% annual interest rate and includes an option to capitalize monthly interest obligations. Additionally, any future settlement via securities issuance requires approval from the TSX Venture Exchange (TSXV).
Conditional TSXV approval was received for the loan facility, with an initial drawdown expected on August 7, 2026. Separately, Lomiko secured up to $96,118 in rebates from the 2026 Junior Exploration Assistance (JEA) program for its Yellow Fox project. A management information circular will be filed, and a special meeting of securityholders is expected in September 2026 to vote on the transaction.
Lomiko Metals Inc. (LMR) issued this release as an incremental follow-up to the definitive acquisition agreement announced on July 28, 2026. The market was already aware of the C$0.13/share offer and the C$800,000 bridge loan.
The increase in shareholder support to 22.9% is positive but critically low for a court-approved arrangement. With insiders and officers holding ~18.19%, independent shareholder support stands at only ~4.7%. This leaves the deal highly vulnerable to rejection at the upcoming vote.
The bridge loan drawdown provides immediate, necessary liquidity to address the company's working capital deficit, but the interest capitalization feature and potential future security issuances for debt settlement introduce significant long-term dilution risk. The JEA rebate is immaterial to the company's financial position.
Overall, the news confirms operational and financing progress but does not materially alter the valuation or de-risk the transaction.
Lomiko Metals Inc. (LMR) is a critical minerals explorer and developer focused on graphite and antimony projects in Quebec and Newfoundland, Canada. Its flagship asset is the La Loutre Graphite Project in Quebec. A Pre-Feasibility Study (PFS) released in March 2026 outlines a 28-year mine life with 46.8 Mt of probable mineral reserves averaging 4.79% Cg.
The PFS reports economic indicators including a pre-tax NPV of CAD $797.5M, an after-tax NPV of CAD $617.4M, and an after-tax IRR of 24.7% at a graphite price of US $1,524/t. Initial capital costs are estimated at CAD $504.6M.
The company is advancing metallurgical testing and anode piloting to transition from natural flake graphite to battery-grade anode material. Additional assets include the Yellow Fox property in Newfoundland, which hosts antimony, gold, silver, and REEs, as well as early-stage graphite projects in the Laurentides region.