Lahontan closes $10.37M first tranche of placement

Executive Summary

• Lahontan Gold Corp. has closed the first tranche of its non-brokered private placement, raising gross proceeds of $10,377,200.
• The company issued 25,310,244 units at a price of $0.41 per unit, with each unit consisting of one common share and one-half of a common share purchase warrant.
• The offering is classified as a related-party transaction under TSX Venture Exchange Policy 5.9 and MI 61-101, with an insider acquiring 60,000 units.

Key Details

• Gross Proceeds: $10,377,200
• Units Issued: 25,310,244 units
• Price Per Unit: $0.41 CAD
• Unit Composition: Each unit comprises one common share and one-half of one common share purchase warrant.
• Warrant Terms:
  • Each warrant entitles the holder to purchase one common share at an exercise price of $0.60 CAD.
  • Initial term: Two years from the date of issuance.
  • Acceleration Clause: If the common shares trade at or above $1.00 for 10 consecutive trading days (starting 4 months and 1 day after issuance), the company may accelerate the warrant term to expire 30 business days after announcing the reduction.
• Use of Proceeds: Exploration at the Santa Fe mine and West Santa Fe projects, and general working capital.
• Hold Period: Four months plus one day from the date of issuance for all securities issued, subject to applicable securities legislation.
• Related-Party Transaction Details:
  • An insider acquired 60,000 units.
  • The company relied on exemptions from valuation and minority shareholder approval requirements under MI 61-101 (sections 5.5(b) and 5.7(1)(a)) because it is not listed on a specified market and the insider's participation does not exceed 25% of market capitalization.
  • No material change report was filed 21 days prior to closing, deemed reasonable to expedite the offering.

Notable Quotes

• None provided in the text.