McFarlane Lake Mining Announces Private Placement Offering
Toronto, Ontario – McFarlane Lake Mining Limited, a Canadian gold exploration and development company, recently made an exciting announcement regarding a private placement financing. The Company intends to sell Securities, which consist of Units and flow-through shares (FT Shares), to raise gross proceeds of up to C$1,000,000.
Details of the Offering
McFarlane Lake plans to offer for sale:
- Up to 20,000,000 Units at a price of C$0.05 per Unit.
- Up to 14,285,714 FT Shares at a price of C$0.07 per FT Share.
Each Unit will consist of one common share and one-half of one common share purchase warrant. Each whole warrant will be exercisable to acquire one additional common share at an exercise price of C$0.08 for a period of 24 months from the closing date of the Offering.
Flow-Through Shares and Their Benefits
The FT Shares offered by McFarlane Lake will qualify as flow-through shares under the Income Tax Act (Canada). This means that investors purchasing these shares will be entitled to certain tax incentives. Specifically, the “flow-through mining expenditures” incurred by McFarlane Lake on exploration and development activities in Canada will be renounced to the investors. These renounced expenditures will reduce the investors’ taxable income in the year of the investment.
Impact on McFarlane Lake
The private placement offering will provide McFarlane Lake with the necessary capital to further its exploration and development activities. With the funds raised, the Company can focus on advancing its projects and potentially delivering shareholder value. The proceeds from the sale of FT Shares will be allocated to eligible “flow-through mining expenditures,” as defined in the Tax Act, which will benefit McFarlane Lake in the long run.
Impact on Investors
Investors participating in the private placement offering will not only be supporting McFarlane Lake’s growth but also taking advantage of the tax incentives associated with flow-through shares. The potential tax savings can make the investment more attractive, especially for those in higher tax brackets.
Conclusion
McFarlane Lake Mining Limited’s private placement offering of Units and FT Shares is an opportunity for investors to support a Canadian gold exploration and development company while enjoying potential tax benefits. The funds raised will enable McFarlane Lake to continue its mission of discovering and developing gold resources, potentially leading to increased shareholder value.
As always, it’s essential to consult with a financial advisor and review the offering memorandum before making any investment decisions.
