/NOT FOR DISTRIBUTION TO UNITED
STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN
THE UNITED STATES/
TORONTO, Sept. 28, 2021 /CNW/ - Baselode Energy
Corp. ("Baselode" or the "Company") (TSXV: FIND)
(OTCQB: BSENF) is pleased to announce the closing of the second and
final tranche of its previously announced non-brokered private
placement (the "Offering"). Under the second tranche, the
Company sold 5,669,795 flow-through units of the Company (the
"FT Units") at a price of C$0.48 per FT Unit and 2,548,684 non-flow-through
units of the Company (the "Units") at a price of
C$0.48 per Unit for gross proceeds to
the Company of C$3,944,869.92. 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 Unit will consist of one
common share of the Company (each, a "Unit Share") and one
half of one 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 28, 2023.
In aggregate, the Company sold 13,297,499 FT Units and 2,548,684
Units for aggregate gross proceeds of C$7.6M under both tranches of the Offering.
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 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 second tranche, the Company paid total finder's fees of
C$276,140.89 and issued to the
finders 575,293 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 September 28, 2023. The FT Shares, Unit Shares
and Warrant Shares issuable under the second 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 January 28, 2022 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.
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.
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
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.
