Lahontan Gold arranges $2-million private placement

Executive Summary

• Lahontan Gold Corp. has arranged a non-brokered private placement financing for gross proceeds of up to $2 million.
• The company will issue up to 13,333,333 units at a price of 15 cents per unit, with closing subject to regulatory approvals including the TSX Venture Exchange.
• Proceeds are designated for general working capital and exploration activities at the Santa Fe mine and West Santa Fe projects.

Key Details

• Financing Structure: Non-brokered private placement of units.
• Price: 15 cents per unit.
• Quantity: Up to 13,333,333 units.
• Gross Proceeds: Up to $2,000,000.
• Unit Composition: Each unit consists of 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 25 cents.
  • Initial term: Two years from the date of issuance.
  • Acceleration Clause: If the common shares trade at or above 35 cents for 10 consecutive trading days (starting four months and one day after issuance), the company may accelerate the warrant expiration to 30 business days following the announcement of the reduced term.
• Use of Proceeds: General working capital and exploration at the Santa Fe mine and West Santa Fe projects.
• Closing Conditions: Subject to receipt of all necessary corporate and regulatory approvals, including TSX Venture Exchange approval.
• Hold Period: All securities are subject to a hold period of four months plus one day from the date of issuance, plus applicable resale rules.

Notable Quotes

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