TORONTO, Sept. 9, 2021 /CNW/ - Baselode Energy
Corp. (TSXV: FIND) (OTCQB: BSENF) (the
"Company") announces that, further to its news release dated
August 30, 2021, the Company intends
on closing a second tranche of its previously announced
non-brokered private placement (the "Offering") of
flow-through units ("FT Units") and non-flow-through units
(the "Units") of the Company. The closing of the second
tranche is scheduled on or before September
30, 2021. Under the second tranche, the Company anticipates
aggregate gross proceeds to the Company of up to $3,838,702. Each FT Unit will consist of one
common share of the Company to be issued as a "flow-through share"
within the meaning of the Income Tax Act (Canada) (each, a "FT Share") and one
half of one common share purchase warrant (each whole warrant, a
"Warrant"). Each Warrant issued under the second tranche
will entitle the holder thereof to purchase one common share (each,
a "Warrant Share") at a price of C$0.75 at any time on or before September 30, 2023. Each Unit will consist of one
common share of the Company and one half of one Warrant.
The Company confirms that there is no material information about
the Company that has not been disclosed.
Net proceeds from the Offering will be used for exploration work
at the Company's Catharsis, Hook and Shadow projects. Work at these
projects includes diamond drill testing for near-surface,
basement-hosted, high-grade uranium targets in the Athabasca Basin area of northern Saskatchewan, Canada.
The gross proceeds from the issuance of the FT Shares will be
used for "Canadian Exploration Expenses" (within the meaning of the
Income Tax Act (Canada)) (the
"Qualifying Expenditures"), which will be renounced with an
effective date no later than December 31,
2021 to the purchasers of the FT Shares in an aggregate
amount not less than the gross proceeds raised from the issue of
the FT Shares. If the Qualifying Expenditures are reduced by the
Canada Revenue Agency, the Company will indemnify each subscriber
of FT Shares for any additional taxes payable by such subscriber as
a result of the Company's failure to renounce the Qualifying
Expenditures.
The Company may pay finders fees in the second tranche on the
same terms as in the first tranche.
The securities offered have not been, and will not be,
registered under the United States Securities Act of 1933, as
amended (the "U.S. Securities Act") or any U.S. state
securities laws, and may not be offered or sold in the United States or to, or for the account or
benefit of, United States persons
absent registration or an applicable exemption from the
registration requirements of the U.S. Securities Act and applicable
U.S. state securities laws. This press release does not constitute
an offer to sell or the solicitation of an offer to buy securities
in the United States, nor in any
other jurisdiction.
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
Cautionary Note Regarding Forward-Looking
Statements: This press release includes certain
forward-looking statements and forward-looking information
(together, "forward-looking statements"). All statements
other than statements of historical fact included in this release,
including, without limitation, statements regarding, the Offering,
and other future plans and objectives of the Company are
forward-looking statements. There can be no assurance that
such statements will prove to be accurate and actual results and
future events may vary from those anticipated in such
statements. Important risk factors that could cause actual
results to differ materially from the Company's plans or
expectations include failure to close the Offering, a failure to
obtain final TSXV approval of the Offering and failure to raise
sufficient funds on the proposed terms or at all. The
forward-looking statements in this press release were developed
based on the assumptions and expectations of management, including
that TSXV acceptance for the Offering will be obtained, the
required fundraising will be completed, and the other assumptions
disclosed in this press release and that the risks described above
will not materialize. There can be no assurance that the
Offering will complete. The Company expressly disclaims any
intention or obligation to update or revise any forward-looking
statements whether as a result of new information, future events or
otherwise, except as otherwise required by applicable securities
legislation.
SOURCE Baselode Energy Corp.
