NOT FOR DISTRIBUTION TO UNITED STATES WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
January 26, 2018
Vancouver, British Columbia – Lincoln Mining Corporation, TSX-V: LMG (“Lincoln” or the Company”) is pleased to announce that it has closed the first tranche of its previously announced non-brokered private placement (see news release January 9, 2018), which was over-subscribed.
The Company issued a total of 13,421,904 units at a price of $0.05 per unit (“Units”) for gross proceeds of $671,095.20. Each Unit is comprised of one common share of the Company and one non-transferable common share purchase warrant (a “Warrant”). Each Warrant entitles the holder to acquire one additional common share of the Company at an exercise price of $0.08 per share until April 26, 2022.
The Company paid a cash finder's fee of $6,250, representing 5% of the proceeds raised by a qualified finder in connection with the closing of the first tranche of the private placement.
Palisade Global Investments Ltd. ("Palisade"), an insider of the Company, purchased 2,500,000 Units under the private placement constituting, to that extent, a "related party transaction" under Multilateral Instrument 61-101 Protection of Minority Security Holders in Special Transactions ("MI 61-101"). Palisade's participation in the private placement is exempt from the formal valuation and minority shareholder approval requirements of MI 61-101.
Lincoln intends to use the proceeds raised from the private placement for permitting on the Pine Grove project and for general working capital purposes.
All securities issued or issuable under the first tranche of the private placement will be subject to a four month hold period in Canada expiring on May 27, 2018, in addition to such other restrictions as may apply under applicable securities laws of jurisdictions outside of Canada.
Lincoln also announces that it plans to arrange an additional tranche of this private placement to raise additional proceeds of up to $100,000 through the issuance of up to an additional 2,000,000 Units.
The Company did not file a material change report more than 21 days before the expected closing of the first tranche of the private placement, as the details and amounts of the insider participation in the private placement were not finalized until closer to the closing of the private placement and the Company wished to close the transaction as soon as practicable for sound business reasons.
Lincoln Mining Corp. is a Canadian precious metals exploration and development company with two projects in various stages of exploration and development, namely the Pine Grove gold property in Nevada and the Oro Cruz gold property in California. In the United States, the Company operates under Lincoln Gold US Corp. and Lincoln Resource Group Corp., both Nevada corporations.
For further information, please contact Investor Relations at 604-688-7377 or visit the Company’s website at www.lincolnmining.com.
On behalf of Lincoln Mining Corporation
Paul Saxton, President & CEO
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.
THIS PRESS RELEASE INCLUDES FORWARD-LOOKING STATEMENTS OR INFORMATION. ALL STATEMENTS OTHER THAN STATEMENTS OF HISTORICAL FACT INCLUDED IN THIS RELEASE, INCLUDING WITHOUT LIMITATION, STATEMENTS REGARDING THE USE OF THE PROCEEDS FROM THE PRIVATE PLACEMENT AND PLANS TO CLOSE ADDITIONAL TRANCHES, ARE FORWARD-LOOKING STATEMENTS THAT INVOLVE VARIOUS RISKS AND UNCERTAINTIES. THERE CAN BE NO ASSURANCE THAT SUCH STATEMENTS WILL PROVE TO BE ACCURATE AND ACTUAL RESULTS AND FUTURE EVENTS COULD DIFFER MATERIALLY FROM THOSE ANTICIPATED IN SUCH STATEMENTS. IMPORTANT FACTORS THAT COULD CAUSE ACTUAL RESULTS TO DIFFER MATERIALLY FROM THE COMPANY'S PLANS OR EXPECTATIONS INCLUDE AVAILABILITY OF CAPITAL AND FINANCING TO MAINTAIN THE COMPANY’S PROJECTS; CHANGES IN PLANNED WORK OR USE OF PROCEEDS RESULTING FROM LOGISTICAL, TECHNICAL OR OTHER FACTORS; GENERAL ECONOMIC, MARKET OR BUSINESS CONDITIONS; FLUCTUATING METAL PRICES; THE POSSIBILITY OF COST OVERRUNS OR UNANTICIPATED EXPENSES IN WORK PROGRAMS; REGULATORY CHANGES; TIMELINESS OF GOVERNMENT OR REGULATORY APPROVALS AND OTHER RISKS DETAILED HEREIN AND FROM TIME TO TIME IN THE FILINGS MADE BY THE COMPANY. THE COMPANY MAKES ALL REASONABLE EFFORTS TO UPDATE ITS CORPORATE MATERIAL, DOCUMENTATION AND FORWARD-LOOKING INFORMATION ON A TIMELY BASIS.