Lancaster Resources closes $500,000 private placement

Executive Summary

• Lancaster Resources closed an initial $500,000 private placement (10 M units @ $0.05) and subsequently upsized the offering by an additional $300,000, bringing total gross proceeds to $800,000.
• Each unit includes one common share plus one warrant to purchase an additional share at $0.08 for two years; 40,000 finder’s warrants were also issued at $0.08 per share.
• Proceeds will fund exploration at the 100 % owned Lake Cargelligo gold project in New South Wales and cover marketing and general working‑capital needs; management may contribute up to $200,000 of the upsized amount.

Key Details

• Initial financing: 10 million units sold at $0.05 per unit → $500,000 gross cash proceeds.
• Upsize: Additional $300,000 raised, total offering $800,000 in cash.
• Unit composition: 1 common share + 1 warrant (exercise price $0.08, two‑year term).
• Finder’s warrants: 40,000 warrants issued at $0.08 per share, two‑year term.
• Broker commission: $2,000 cash paid to a registered broker.
• Statutory hold period: All securities (including finder’s warrants) subject to a four‑month‑plus‑one‑day hold under securities law.
• Use of proceeds:
• Exploration program at Lake Cargelligo gold project (100 % owned, NSW, Australia).
• Marketing expenses and general working capital.
• Management participation: Up to $200,000 may be contributed by management in the upsized financing.

Notable Quotes

“We're pleased to close the initial $500,000 and appreciate the strong support that led to the upsize,” said Andrew Watson, President and CEO. “This capital allows us to continue advancing exploration at Lake Cargelligo, where we see significant gold discovery potential.”