Lion Copper Announces $2.5 Million Convertible Notes Offering

Executive Summary

• Lion Copper and Gold Corp. announced a non‑brokered private placement to raise up to US $2,500,000 through secured convertible debentures bearing 12% annual interest, maturing in 12 months.
• The debentures are convertible at US $0.0965 per share; the company will also issue up to 25,906,735 common‑share purchase warrants exercisable at the same price for 60 months.
• Proceeds are earmarked for acquiring land and mineral rights in the Yerington area projects, with the debentures secured by those assets.

Key Details

• Offering Size: Up to US $2,500,000 gross proceeds.
• Instrument: Secured convertible debentures (“Debentures”).
• Interest Rate: 12% per annum.
• Maturity: 12 months from issuance date.
• Conversion Price: US $0.0965 per common share (any time before maturity).
• Interest Settlement: May be paid in shares at the prevailing price, at the Company’s option.
• Security: Debentures secured by lands and mineral rights to be purchased with proceeds.
• Use of Proceeds: Purchase of lands and associated mineral rights for Yerington area projects.
• Warrants: Up to 25,906,735 common‑share purchase warrants issued concurrently.
• Exercise Price: US $0.0965 per share.
• Term: 60 months from the Closing Date.
• Related Party Transaction: One insider (director/control person) will receive a US $450,000 debenture; exemption relied upon under MI 61‑101 because fair market value ≤ 25% of market cap.
• Statutory Hold Period: Four months from issuance of the Debentures.
• Resale Restrictions: Subject to Rule 144 (generally 6–12 month holding period).
• Registration Status: Securities not registered under U.S. securities laws; offering limited to exempt or qualified purchasers.

Notable Quotes

(No direct quotes were provided in the release.)