LeadFX Announces Extension of Sentient Loan


(All dollar amounts are in United States dollars unless otherwise indicated)

PERTH, Australia, Feb. 27, 2018 /CNW/ - LeadFX Inc. (the "Company" or "LeadFX") (TSX: LFX) is pleased to announce it has entered into an amendment ("Amendment") to the second amended and restated credit agreement with Sentient Global Resources Fund IV, LP ("Sentient") to extend the maturity date for re-payment of the indebtedness outstanding to Sentient ("Sentient Loan").

LeadFX Inc. (CNW Group/LeadFX Inc.)

The Sentient Loan will now mature on the earlier of March 31, 2019 or financial close being achieved for the financing of the planned 70,000 tpa Hydrometallurgical Facility at the Company's 100% owned Paroo Station Lead Mine in Wiluna, Western Australia. It will continue to incur interest at 10% per annum until its maturity. The Amendment is subject to the Company receiving approval from the Toronto Stock Exchange.

Financial close is defined as being the date on which the Company has demonstrated it has fully funded the Hydrometallurgical Facility and conditions to first drawdown on debt facilities, if any, for the construction of the Hydrometallurgical Facility have been met.

Commenting on the extension LeadFX CEO Mr. Andrew Worland stated "Sentient has shown tremendous support to the Company's activities over a considerable period of time and this extension further underlines their commitment to providing the optimal conditions for further equity value to be generated for all shareholders."

As at February 28, 2018 (the previous maturity date) the Sentient Loan would total $16,148,326.

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 include but are not limited to statements and information concerning the following: Toronto Stock Exchange approval for the Amendment; timing of and ability to secure project financing favorable to the Company (if at all) regarding the proposed Hydrometallurgical Facility; satisfaction of conditions to the funding of debt facilities regarding the proposed Hydrometallurgical Facility; and generation of further equity value for all shareholders and the amount of interest incurred on the Sentient Loan.

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.


Andrew Worland, Chief Executive Officer, LeadFX Inc, 1D, 21 Teddington Street, Burswood, Perth, Western Australia 6100, aworland@leadfxinc.com, Email: info@leadfxinc.com