Lahontan Gold Corp. (TSXV: LG | OTCQB: LGCXF) has closed its non-brokered private placement financing for gross proceeds of C$720,000 through the issuance of 36,000,000 common shares in the capital of the company at a price of C$0.02 per common share.
The company has also announced that Victoria Gold Corp. has completed the sale of 42,132,139 common shares of Lahontan, representing 17.4% of the company’s outstanding common shares, after giving effect to the offering.
The sale was made through a share purchase agreement in reliance upon the prospectus exemptions contained in NI 45-102. Lahontan understands the purchasers to be comprised of existing shareholders, including two prominent precious metals institutional investors.
Kimberly Ann, Lahontan Gold Corp CEO, chair, and founder commented, “The company is very pleased to close this fully subscribed no-warrant offering and to see the completion of the Victoria Sale. Following closing of the offering and completion of the Victoria Sale, a significant majority of the company’s common shares are now held by a group of very supportive long-term investors, including company management, who share a common vision of the company’s future and the full development of the Santa Fe Mine project.”
Gross proceeds raised from the offering will be used for general working capital purposes as follows: (i) approximately 29% will be used for general and administrative purposes; (ii) approximately 29% will be used for exploration at the company’s Santa Fe Mine project; (iii) approximately 17% will be used for metallurgical testing and supporting consultants for the company’s Santa Fe Mine project; and (iv) approximately 25% will be used at the company’s Santa Fe Mine project for exploration permitting.
“In particular, the Victoria Sale removes a significant share overhang which we believe has negatively affected the company’s share price since Victoria announced on August 15, 2024 that it had entered into receivership. With management aligned with our key shareholders, Lahontan looks forward to a successful 2025, driving forward our mine permitting activities and targeting opportunities to enhance the Santa Fe Mine project preliminary economic assessment.”
To find out more, please visit www.lahontangoldcorp.com
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