Lancaster Resources closes $757,000 private placement

Executive Summary

• Lancaster Resources completed the final closing of its non‑brokered private placement, raising total gross proceeds of $757,000, up from the originally targeted $500,000.
• The final tranche consisted of 5.14 million units at $0.05 per unit, generating $257,000 in gross proceeds (including $185,000 from debt conversions).
• Proceeds are earmarked for exploration at the 100%‑owned Lake Cargelligo gold project in New South Wales and for general working capital; insider participation triggered NI 62‑104 early‑warning reporting.

Key Details

• Financing Structure: Non‑brokered private placement; total gross proceeds $757,000 (original tranche $500,000).
• Final Tranche Terms: 5.14 M units @ $0.05/unit → $257,000 gross; includes $185,000 debt conversions.
• Unit Composition: Each unit = 1 common share + 1 common share purchase warrant (exercisable at $0.08 for two years).
• Finder’s Fees & Broker Warrants: $1,600 cash finder’s fees paid; 32,000 broker warrants issued (exercise price $0.08, two‑year term).
• Use of Proceeds: Exploration on Lake Cargelligo gold project; marketing and general working capital.
• Hold Period: All securities subject to a four‑month‑and‑one‑day hold period per securities law.
• Insider Participation:
• Andrew Watson (Director/President/CEO) – 680,000 units via controlled company.
• Rick Huang (CFO) – 1.02 M units via controlled company.
• Penny White (Director) – 2 M units via controlled company.
• Early‑Warning Reporting: Ms. White’s holdings now exceed 10% on a partially diluted basis (≈11.51%), triggering NI 62‑104 filing within two business days.
• Related Party Transaction: Insider subscriptions qualify as related‑party transactions under MI 61‑101 but are exempt from minority approval because fair market value ≤25% of market cap.

Notable Quotes

(No direct quotes were provided in the release.)