HLM Raises $566,000 in Financing Oversubscribed by 26%
Sudbury, Ontario – July 30, 2015 – Houston Lake Mining Inc. (TSX.V: HLM), is a mining exploration company which is actively exploring for rare metals lithium, tantalum, rubidium and cesium by currently advancing its 100% owned and optioned PAK Rare Metals Project in northwestern Ontario, Canada. HLM today reported the closing of a non-brokered private placement offering for a total of 3,144,444 units (“Units”) of the Company priced at $0.18 per Unit, for total gross proceeds of $566,000.
The Common Shares to be issued under a unit offering of 3,144,444 units (“Units”) at a subscription price of $0.18 per Unit. Each Unit shall consist of one (1) Common Share of the Company and one (1) share purchase warrant (the “Warrant”). Each full Warrant shall entitle the holder thereof to purchase one additional common share of HLM at an exercise price of $0.29 for an 18 month period from the closing (the “Offering”).
In connection with the $566,000 Offering, the Company issued finder’s fees of $4,320.00 (8% of the gross proceeds of the Offering) and 24,000 finder warrants (8% of the total number of Units sold under the Offering). Each finder option will be exercisable at a price of $0.29 into one common share for a period of eighteen months from the date of issuance.
All of the Shares and Warrants issued pursuant to the private placement are subject to a minimum 4-month hold period. Proceeds from the financing will be used to advance exploration of HLM’s 100% owned and optioned PAK Rare Metals project located in northwestern Ontario.
On September 15, 2015 HLM announced the Phase IV Drill Program on the PAK Lithium Project, located in the Red Lake area of Ontario. The Phase IV diamond drill program was a follow-up to the Canadian National Instrument (N.I.) 43-101 Mineral Resource Estimate news release that was disseminated January 28th, 2015 and the Winter Phase III Diamond Drill Program. The Phase IV Drill Program (“the Program”) was designed to test the hypothesis that the deposit is plunging to the south-east. Results of the Program will be released in the near future.