LeadFX Announces Private Placement Offering

(All dollar amounts are in Canadian dollars)

TORONTO, Aug. 29, 2017 /CNW/ - LeadFX Inc. (the "Company" or "LeadFX") (TSX: LFX) is pleased to announce that it has entered into a binding term sheet ("Binding Term Sheet") with Sentient Global Resources Fund IV, LP ("Sentient") and InCoR Energy Materials Limited ("InCoR") for the issue of up to 3,125,000 common shares ("Common Shares") of the Corporation at $0.80 per common Share by way of a non-brokered private placement for gross proceeds of approximately $2.5 million (the "Offering"), to close in two separate tranches.

Pursuant to the Binding Term Sheet, Sentient and InCoR have agreed to purchase no less than 607,312 and 642,688 Common Shares, respectively, under the first tranche of the Offering and no less than 910,969 and 964,031 Common Shares, respectively, under the second tranche of the Offering. Proceeds of the first tranche will be used for general corporate purposes and working capital needs of the Company based on an agreed schedule of budgeted expenditure and proceeds of the second tranche will be determined by InCoR and Sentient pursuant to the budgeted expenditure needs of the Company closer to the time of the second tranche closing. 

"We are pleased to have the ongoing support of our technology partner InCoR and our major shareholder Sentient, as InCoR works towards completing a definitive feasibility study on their innovative hydrometallurgical process." said Rob Scargill, President and CEO. "If the current study work is successful, we believe that the technology has the potential to transform Paroo Station from a relatively short-life lead concentrate operation to a longer-life, lower-cost lead metal producer."

The first tranche of the Offering is expected to close on or about August 31, 2017, with the second tranche of the Offering expected to close on or before October 31, 2017. The Binding Term Sheet and closing of the Offering is subject to certain conditions, including, the negotiation, execution and delivery of definitive legal documents and receipt of the approval of the Toronto Stock Exchange. As a further condition of the Offering, subject to certain exceptions, LeadFX has agreed not to issue any additional Common Shares for a period of 4 months after the closing date of the Offering without the prior written consent of Sentient and InCoR.

Following completion of the Offering, Sentient and InCoR will hold approximately 82.3% and 3.9% of the issued and outstanding Common Shares of LeadFX, respectively.

About LeadFX

LeadFX is a Canadian-based mining company focused on the development of lead-silver projects located in stable jurisdictions. Our current portfolio includes a restart-ready lead operation in Western Australia and a development project in Utah, USA. The Company continues to seek opportunities at its new properties in North America to underpin future cash flow and growth. LeadFX trades under the symbol "LFX" on the Toronto Stock Exchange.

Forward-Looking Statements

This news release may contain "forward-looking statements" within the meaning of applicable Canadian securities laws.  Examples of forward-looking information in this news release includes but is not limited to statements and information concerning timing of the closing of the Offering, receipt of regulatory approval to close the Offering, the share ownership by each of Sentient and InCoR in LeadFX upon completion of the Offering and the outlook on the Paroo Station upon the completion of the definitive feasibility study on the hydrometallurgical process.  Forward-looking statements are often, but not always, identified by the use of words such as ''seek'', ''anticipate'', ''contemplate'', ''target'', ''believe'', ''plan'', ''estimate'', ''expect'', and ''intend'' and statements that an event or result ''may'', ''will'', ''can'', ''should'', ''could'' or ''might'' occur or be achieved and other similar expressions. Forward-looking information by its nature requires assumptions and involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information, and readers are cautioned not to place undue reliance on such information. These statements are based on expectations, estimates and projections as at the date of this news release and are subject to a number of risks and uncertainties. Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking information prove incorrect, actual results, performance or achievement may vary materially from those expressed or implied by the forward-looking information contained in this news release. These risk factors should be carefully considered and readers are cautioned not to place undue reliance on forward-looking information, which is current only as of the date of this news release. All subsequent forward-looking information attributable to LeadFX herein is expressly qualified in its entirety by the cautionary statements contained in or referred to herein. LeadFX does not undertake any obligation to release publicly any revisions to this forward-looking information to reflect events or circumstances that occur after the date of this news release or to reflect the occurrence of unanticipated events, except as may be required under applicable securities laws.

SOURCE LeadFX Inc.

For further information: LeadFX Inc.: Jessica Helm, VP, Corporate Communications and Investor Relations, Suite 3001, 1 Adelaide Street East, Toronto, Ontario M5C 2V9, (416) 867 9298, Email: info@leadfxinc.com


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