Lancaster Resources expands Lake Cargelligo property

Executive Summary

• Lancaster Resources Inc. has acquired additional mineral claims in New South Wales, Australia, doubling its footprint at the Lake Cargelligo gold project to a total of 62,300 hectares.
• The company simultaneously announced the amendment of existing unsecured convertible debentures and a new private placement financing of up to $500,000.

Key Details

• Land Acquisition:
  • Acquired approximately 33,400 hectares of additional mineral claims via directly staked mineral applications submitted by Lancaster's wholly owned Australian subsidiary.
  • The new claims are immediately adjacent to existing holding ELA 9775.
  • The combined land package totals approximately 62,300 hectares.
  • The project is located 60 km from the producing Mineral Hill mine in a prolific gold region.
  • Described as an advanced greenfield gold-silver project with prospective geology for discrete lode-style mineralization.
• Debt Amendment:
  • Successful amendment of certain outstanding unsecured convertible debentures held by existing investors.
  • Maturity date extended to December 31, 2026.
  • Interest rate revised to 12% per annum (calculated annually, not in advance).
  • Accrued interest capitalized into the new principal.
  • Aggregate amended principal amount is $511,731.10.
• New Financing:
  • Financing of up to $500,000 in units priced at five cents ($0.05) per unit.
  • Each unit consists of one common share and one two-year warrant.
  • Warrants are exercisable at eight cents ($0.08) per share.
  • Finders' fees of 8% in cash and 8% in warrants payable to certain finders.
  • No related party participation expected.

Notable Quotes

• "Lancaster is extremely pleased to have acquired these additional mineral claims. The properties significantly boost our exploration prospects in Lake Cargelligo," said Andrew Watson, president and chief executive officer of Lancaster Resources. "This acquisition supports Lancaster's push for precious metal discoveries, alongside our recent Lac Iric polymetallic acquisition. We remain laser focused on continuing to build shareholder value."