Lion Copper arranges $2.5M (U.S.) debenture offering

Executive Summary

• Lion Copper and Gold Corp. announced a non-brokered private placement of secured convertible debentures for gross proceeds of up to $2.5 million (U.S.).
• The offering includes the issuance of common share purchase warrants and involves a related-party transaction with an insider/director.
• Proceeds are designated for the purchase of lands and associated mineral rights for the company's Yerington area projects.

Key Details

• Transaction Structure: Non-brokered private placement of secured convertible debentures.
• Gross Proceeds: Up to $2.5 million (U.S.).
• Debenture Terms:
  • Interest rate: 12% per annum.
  • Maturity: 12 months from issuance.
  • Conversion Price: 9.65 U.S. cents per share.
  • Interest Settlement: May be settled in shares priced at the time of repayment or conversion at the company's option.
  • Security: Repayment secured against the lands and mineral rights purchased with the proceeds.
• Warrants:
  • Quantity: Up to 25,906,735 common share purchase warrants.
  • Exercise Price: 9.65 U.S. cents per share.
  • Term: 60 months from the closing date.
• Related Party Transaction:
  • An insider (director and control person) is investing $450,000 (U.S.).
  • The company relies on exemptions from formal valuation requirements under Multilateral Instrument 61-101 (Sections 5.5(a) and 5.7(1)(a)) as the fair market value of securities issued to the related party will not exceed 25% of the company's market capitalization.
• Restrictions:
  • Statutory hold period: 4 months from issuance.
  • Rule 144 restrictions: Requires holding for 6 to 12 months prior to resale eligibility under U.S. securities laws.
• Use of Proceeds: Purchase of lands and associated mineral rights for the Yerington area projects.

Notable Quotes

• None provided in the text.