/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR
DISSEMINATION IN THE UNITED
STATES/
TORONTO, Aug. 30, 2021 /CNW/ - Baselode Energy Corp.
("Baselode" or the "Company") (TSXV: FIND) (OTCQB: BSENF) is
pleased to announce the closing of a first tranche of a
non-brokered private placement (the "Offering"). Under the first
tranche, the Company sold 7,627,704 flow-through units of the
Company (the "FT Units") at a price of C$0.48 per FT Unit for gross proceeds to the
Company of C$3,661,298. 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 first 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 August 30,
2023.
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.
Red Cloud Securities Inc. acted as finder under the Offering.
Under the first tranche, the Company paid total finder's fees of
C$256,291 and issued to the finders
533,939 warrants of the Company (the "Finder's Warrants"). Each
Finder's Warrant is exercisable to acquire one common share of the
Company at a price of C$0.48 at any
time on or before August 30, 2023.
The FT Shares and Warrant Shares issuable under the initial tranche
of the Offering as well as any common shares of the Company that
are issuable from the Finder's Warrants will be subject to a hold
period ending on December 31, 2021,
in accordance with applicable securities laws.
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.
About Baselode Energy Corp.
Baselode currently controls 100% of approximately 207,000
hectares for exploration in the Athabasca Basin area, northern Saskatchewan, Canada. The land package is free
of any option agreements or underlying royalties.
Baselode's Athabasca 2.0
exploration thesis is focused on discovering near-surface,
basement-hosted, high-grade uranium orebodies outside of the
Athabasca Basin. The exploration
thesis is further complemented by the Company's preferred use of
innovative and well-understood geophysical methods to map deep
structural controls to identify shallow targets for
diamond-drilling.
For information and updates on Baselode please visit:
www.baselode.com
and please follow us on Twitter @BaselodeE
and please follow us on LinkedIn @BaselodeEnergyCorp
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the TSX Venture Exchange
policies) accepts responsibility for the adequacy or accuracy of
this release.
Certain information in this press release may contain
forward-looking statements. This information is based on current
expectations that are subject to significant risks and
uncertainties that are difficult to predict. Actual results might
differ materially from results suggested in any forward-looking
statements. Baselode Energy Corp. assumes no obligation to update
the forward-looking statements, or to update the reasons why actual
results could differ from those reflected in the forward
looking-statements unless and until required by securities laws
applicable to Baselode Energy Corp. Additional information
identifying risks and uncertainties is contained in the Company's
filings with Canadian securities regulators, which filings are
available under Baselode Energy Corp. profile at www.sedar.com.
This news release does not constitute an offer to sell or a
solicitation of an offer to buy any of the securities in
the United States. The securities
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 state securities laws and may not be offered or sold within
the United States or to, or for
the account or benefit of, U.S. Persons unless registered under the
U.S. Securities Act and applicable state securities laws, unless an
exemption from such registration is available.
SOURCE Baselode Energy Corp.
