Lake Victoria closes $6-million private placement
Executive Summary
- Lake Victoria Gold closed an oversubscribed non‑brokered LIFE private placement, raising $6 million from the issuance of 34,285,715 units at $0.175 per unit.
- The company simultaneously upsized a concurrent private placement to raise up to $2 million through the sale of up to 11,428,571 shares at the same price.
- Proceeds are earmarked for exploration and development of the Tembo and Imwelo gold projects and general working capital, strengthening the firm’s financial position to advance production.
Key Details
- LIFE Private Placement:
- Units issued: 34,285,715 (each unit = 1 common share + ½ warrant).
- Price per unit: $0.175.
- Gross proceeds: $6,000,000 (exceeds the $3 M minimum).
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Warrants attached to units exercisable at $0.27 for three years.
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Finder’s Fees & Warrants:
- Total cash fees paid: $215,340.13.
- Finder’s warrants issued: 1,218,515 (exercise price $0.175, three‑year term).
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Breakdown by finder (cash fee / warrants):
- Haywood Securities Inc.: $9,800 / 56,000 warrants
- Ventum Financial Corp.: $6,370 / 36,400 warrants
- Canaccord Genuity Corp.: $156,487.63 / 894,215 warrants
- Raymond James Ltd.: $3,675 / 9,000 warrants
- Red Cloud Securities Inc.: $39,007.50 / 222,900 warrants
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Concurrent Private Placement Upsize:
- Additional amount targeted: up to $2 million.
- Shares to be issued: up to 11,428,571 at $0.175 per share.
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Same statutory hold period (four months + one day) applies.
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Use of Proceeds:
- Exploration and upkeep of the Tembo and Imwelo gold projects.
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General working capital.
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Regulatory & Transaction Terms:
- Both placements conducted under NI 45‑106 prospectus exemptions (Part 5A).
- No hold period for LIFE units; statutory hold periods apply to finders’ warrants and concurrent placement securities.
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Closing subject to TSX‑V approval and customary closing conditions.
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Insider Participation:
- Insiders expected to participate in the concurrent private placement, qualifying as a related‑party transaction exempt from formal valuation/approval under MI 61‑101.
Notable Quotes
“The successful completion of this financing represents another strong endorsement of our strategy and assets… With this capital in place, we are well positioned to advance Imwelo toward production, expand our resource base at Tembo and continue consolidating what we believe is one of the most prospective gold districts in Africa.” – Marc Cernovitch, President & CEO
Materiality Assessment: Material – Positive (significant financing that materially enhances liquidity for project advancement).