- LaFleur Minerals has engaged FMI Securities and FM Global Markets to raise up to C$5 million in debt financing.
- The capital will be used to restart production at their fully permitted Beacon Gold Mill in Val-d’Or, Québec.
- The company also launched two equity offerings: a LIFE private placement and a charity flow-through unit offering, which together could raise over C$5.4 million in additional capital.
- LaFleur’s strategy focuses on near-term production at its Beacon Gold Mill, sourcing material from the Swanson Gold Deposit and other surrounding projects, highlighted by current gold prices and production-ready infrastructure as key advantages.
LaFleur Minerals (CSE: LFLR) (OTCQB: LFLRF) (FSE: 3WK0), a Canadian near-term gold producer, is moving forward with its plans to restart gold production at its wholly owned Beacon Gold Mill by securing corporate finance advisors and expanding its capital-raising efforts (https://ibn.fm/O5qUa).
On July 25, the company announced it had engaged FMI Securities Inc. and FM Global Markets Inc. to raise up to C$5 million in secured debt financing. If acquired, these funds would be earmarked for restarting operations at the Beacon Gold Mill, a fully permitted and recently refurbished facility located in Val-d’Or, Quebec, positioned on Canada’s largest gold producing greenstone belt. FMI Securities is registered in Ontario, while FM Global Markets is a U.S.-based FINRA-registered dealer. The arrangement gives LaFleur access to both Canadian and U.S. capital markets.
The engagement lasts 180 days and includes a non-refundable C$25,000 work fee, plus a 4% commission on gross proceeds raised. A reduced 2% fee applies to investors on LaFleur’s pre-approved list. If the company completes a debt financing without the agents during the agreement term, a C$50,000 break fee is payable.
In parallel, LaFleur is offering up to C$2.88 million in units through a non-brokered private placement using the listed issuer financing exemption, known as the “LIFE Offering.” Each unit includes one common share and one warrant exercisable at C$0.75 for 24 months. Warrants are subject to accelerated expiry if the stock closes at or above C$0.90 for 14 consecutive trading days.
The company is also pursuing a C$2.59 million charity flow-through offering to support exploration spending at its Swanson Gold Project. Each unit in this offering consists of one flow-through share and one warrant with the same terms as the LIFE Offering. These proceeds will qualify as “flow-through mining expenditures” under Canadian and Québec tax laws.
The two equity offerings are expected to close this month. LaFleur will pay qualified brokers a 7% cash commission and issue an equal number of broker warrants for the LIFE Offering.
In a recent interview featured on IBN’s MiningNewsWire podcast, LaFleur CEO Paul Ténière and Chairman Kal Malhi discussed the company’s short-term production strategy and its long-term positioning (https://ibn.fm/MXTdz).
“We’re an interesting company in the fact that we have an advanced gold project in Québec’s Abitibi Gold Belt and a nearby permitted mill,” Ténière said. “That puts us in a strong position as a near-term gold producer.”
The district-scale Swanson Gold Project, recently expanded, now spans more than 18,000 hectares, and includes a current mineral resource estimate. LaFleur also holds an existing mining lease at the site, enabling faster production timelines. The company’s plan is to process material from Swanson at the Beacon Gold Mill, which has a capacity of over 750 tonnes per day.
Malhi, who also heads Bullrun Capital, explained how LaFleur acquired its core assets via bankruptcy proceedings. “We were able to win a bid on the Beacon Gold Mill, which Monarch had invested $20 million into upgrading. It’s fully permitted and ready to rock,” he said. “We also acquired a nearby gold deposit called the Swanson Gold Deposit… We’ve turned that project into LaFleur Minerals. Now, with gold prices surging, the economics have changed phenomenally — and we may look at producing not just from our own property, but also from others in the region.”
Ténière added that today’s high gold prices create favorable conditions for restarting operations and accelerating project timelines. “We have a mining lease at Swanson, which allows us to get into production much faster than we could otherwise,” he said. “With gold hitting over $3,000 an ounce, it makes a lot of these deposits potentially economically viable… It’s an exciting time to be in gold, and we’re in a great position to move quickly.”
For more information, visit the company’s website at LaFleurMinerals.com.
Qualified Person Statement:
All scientific and technical information contained in this article has been reviewed and approved by Louis Martin, P.Geo. (OGQ), Exploration Manager and Technical Advisor of the company and considered a Qualified Person for the purposes of NI 43-101.
NOTE TO INVESTORS: The latest news and updates relating to LFLRF are available in the company’s newsroom at ibn.fm/LFLRF
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