SOURCE: LeadFX Inc.

LeadFX Inc.

April 27, 2016 17:36 ET

LeadFX Announces One Year Extension for Re-Payment of Secured Debt

TORONTO, ON--(Marketwired - April 27, 2016) -  LeadFX Inc. (the "Company" or "LeadFX") (TSX: LFX) today announced that it has reached an agreement with its secured lender, Enirgi Group Corporation ("Enirgi Group"), to extend the maturity date for re-payment of the outstanding principal and accrued interest owing to Enirgi Group to June 30, 2017, subject to shareholder approval.

Enirgi Group has agreed to enter into an amended and restated credit agreement (the "Amended and Restated Credit Agreement") with the Company to extend the maturity date and, subject to certain limited exceptions, forbear from exercising its rights therein, until June 30, 2017. All other material terms and conditions of the secured credit agreement will remain the same. The Amended and Restated Credit Agreement will be executed subject to the satisfaction of certain conditions, including, (i) the receipt of all necessary regulatory and stock exchange approvals, and (ii) approval by a majority of the disinterested shareholders ("Minority Shareholders") of LeadFX at the annual and special meeting of shareholders of the Company to be held on Thursday, June 9, 2016 (the "Meeting"), in accordance with the rules of the Toronto Stock Exchange.

Further details will be provided by the Company with respect to the business of the Meeting at the time of filing of the Management Information Circular.

Robert Scargill, Managing Director of LeadFX commented: "We are pleased that Enirgi Group has agreed to extend the maturity date for payment of the outstanding balance for another 12 months. The extension, together with the recently announced loan facility with Sentient Group, will allow us the financial flexibility to maintain restart readiness at the Paroo Station Mine and seek to grow our lead-silver project portfolio. We encourage all Minority Shareholders to vote in favour of the Amended and Restated Credit Agreement at the Meeting."

The potential restart of the Paroo Station Mine will be contingent on several external factors including a sustained improvement in LME lead prices supported by positive market fundamentals, favourable foreign exchange rates and treatment charges as well as securing the necessary financing to restart operations.

Additional information on LeadFX can be found in the Company's continuous disclosure documents on SEDAR at www.sedar.com and the Company's website at www.leadfxinc.com

About Lead FX

LeadFX is a Canadian-based mining company focused on the development of lead-silver projects located in stable jurisdictions. Our current portfolio includes a restart-ready lead operation in Western Australia and a development project in Utah, USA. The Company is developing opportunities at its new properties in North America to underpin future cash flow and growth. LeadFX trades under the symbol "LFX" on the Toronto Stock Exchange.

Forward-Looking Statements

This news release may contain "forward-looking statements" within the meaning of applicable Canadian securities laws. Examples of forward-looking information in this news release includes but is not limited to statements and information concerning: final Toronto Stock Exchange and Minority Shareholder approval of the Amended and Restated Credit Agreement; the ability of LeadFX to restart the Paroo Station Mine, grow our lead-silver resource portfolio and obtain additional financing; LME lead prices; foreign exchange rates; and treatment charges. Forward-looking statements are often, but not always, identified by the use of words such as "seek", "anticipate", "contemplate", "target", "believe", "plan", "estimate", "expect", and "intend" and statements that an event or result "may", "will", "can", "should", "could" or "might" occur or be achieved and other similar expressions. Forward-looking information by its nature requires assumptions and involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information, and readers are cautioned not to place undue reliance on such information. These statements are based on expectations, estimates and projections as at the date of this news release and are subject to a number of risks and uncertainties. Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking information prove incorrect, actual results, performance or achievement may vary materially from those expressed or implied by the forward-looking information contained in this news release. These risk factors should be carefully considered and readers are cautioned not to place undue reliance on forward-looking information, which is current only as of the date of this news release. All subsequent forward-looking information attributable to LeadFX herein is expressly qualified in its entirety by the cautionary statements contained in or referred to herein. LeadFX does not undertake any obligation to release publicly any revisions to this forward-looking information to reflect events or circumstances that occur after the date of this news release or to reflect the occurrence of unanticipated events, except as may be required under applicable securities laws.    

Contact Information

  • For further information please contact:
    LeadFX Inc.
    Jessica Helm
    VP, Corporate Communications 
    Suite 3001, 1 Adelaide Street East
    Toronto, Ontario M5C 2V9
    (416) 867 9298
    Email: info@leadfxinc.com