SOURCE: LeadFX Inc.

LeadFX Inc.

April 22, 2016 08:25 ET

LeadFX Announces US$2.5 Million Loan Facility

TORONTO, ON --(Marketwired - April 22, 2016) -

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR DISSEMINATION IN THE UNITED STATES

LeadFX Inc. (the "Company" or "LeadFX") (TSX: LFX) today announced that it has executed an unsecured promissory grid note (the "Note") in favour of Sentient Global Resource Fund IV, LP ("Sentient"). Pursuant to the Note, Sentient has agreed to lend the Company up to US$2,500,000 without interest with the principal repayable on June 30, 2017.

The Note will allow the Company greater financial flexibility to maintain restart readiness over the coming months while it reviews the conditions for a restart of the Paroo Station mine. Those conditions include a sustained improvement in LME lead prices supported by positive market fundamentals, favourable foreign exchange rates and treatment charges as well as identification of additional sources of funding. 

The Sentient Group of Global Resource Funds are the majority shareholder of LeadFX. Additional information on LeadFX is available on SEDAR at www.sedar.com and the Company's website at www.leadfxinc.com

About LeadFX
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 the intended use of proceeds of the Note, the potential restart of the Paroo Station Mine and final Toronto Stock Exchange approval of the Note. 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
    T: (416) 867 9298
    E: info@leadfxinc.com