Lahontan Gold closes $2.49-million private placement

Executive Summary

• Lahontan Gold Corp. has closed an upsized non-brokered private placement, issuing 16,665,868 units at $0.15 per unit for gross proceeds of approximately $2.5 million.
• The offering was upsized from the original target of 13,333,333 units due to investor demand.
• Proceeds will be used for general working capital and exploration at the Santa Fe and West Santa Fe projects.

Key Details

• Units Issued: 16,665,868 units.
• Price Per Unit: $0.15 CAD.
• Gross Proceeds: $2,499,880.20 CAD.
• Upsizing: The offering was increased from 13,333,333 units to 16,665,868 units.
• Warrant Terms (Investors): Each unit includes one common share and one-half of one common share purchase warrant.
  • Exercise Price: $0.25 per share.
  • Term: Two years from issuance.
  • Acceleration Clause: If the share price closes at or above $0.35 for 10 consecutive trading days (starting 4 months and 1 day post-issuance), the company may accelerate expiration to 30 business days after the announcement of the reduced term.
• Finder’s Fees:
  • Cash Commissions: $28,910.39 CAD paid to eligible finders.
  • Broker Warrants: 192,735 broker warrants issued.
  • Broker Warrant Terms: Entitle holder to acquire one common share at $0.25 per share for two years, subject to the same acceleration clause as investor warrants.
• Use of Proceeds: General working capital and exploration at the Santa Fe mine and West Santa Fe projects.
• Hold Period: Four months plus one day from the date of issuance.
• Related Party Transaction: An insider acquired 300,000 units. The company relied on exemptions from valuation and minority shareholder approval requirements under MI 61-101.
• Regulatory Filing: No material change report was filed 21 days prior to closing, deemed reasonable to expedite the offering.

Notable Quotes

• None provided in the text.