Letho Resources Corp announced a private placement of an unsecured convertible debenture financing for gross proceeds up to CAD 2,100,000 on July 7, 2022. The debenture will bear interest at the rate of 10% per annum and mature on December 31, 2024. The principal amount of the debenture will be convertible into common shares of the company at CAD 0.07 per share until one year after the date of issue of the debenture and thereafter at CAD 0.10 per share.

The holder of the debenture will also receive a royalty on production per barrel from the assets once certain production criteria have been met. In addition, up to 3,750,000 common shares of Letho will be issued as a finder's fee. The debenture financing is subject to the approval of the Exchange.

All securities issued pursuant to the debenture financing will be subject to a four month hold period from the date of issuance of the debenture, in accordance with applicable securities laws and the policies of the TSX Venture Exchange.