Lahontan Gold Corp. (TSX.V: LG) (OTCQB: LGCXF) has successfully closed an upsized non-brokered private placement, securing gross proceeds of $2,499,880.20 through the issuance of 16,665,868 units at $0.15 per unit. Each unit consists of one common share and one-half warrant, with each whole warrant exercisable at $0.25 for a period of two years, subject to an acceleration clause allowing the company to accelerate the warrant expiry if the shares trade above $0.40 for ten consecutive days. The offering, originally anticipated at a smaller size, was upsized due to strong investor demand.
The net proceeds will be allocated to general working capital and exploration activities at the company's flagship Santa Fe Mine and West Santa Fe Projects in Nevada. The Santa Fe Mine, located in the prolific Walker Lane trend, has a history of past production between 1988 and 1995, yielding 359,202 ounces of gold and 702,067 ounces of silver from open pit heap-leach operations. According to a recent NI 43-101 technical report, the project hosts an Indicated Mineral Resource of 1,539,000 ounces of gold equivalent (Au Eq) and an Inferred Mineral Resource of 411,000 ounces Au Eq, all pit constrained. The company plans to update the preliminary economic assessment and drill test the West Santa Fe satellite project in 2025.
The private placement included finder fees totaling $28,910.39 and the issuance of 192,735 broker warrants with the same accelerated-term structure. The offering constituted a related party transaction but was exempt from formal valuation and minority approval requirements under Multilateral Instrument 61-101. The company's CEO noted that the financing strengthens the balance sheet and positions Lahontan to advance its projects towards production. For more details, the full press release is available at https://ibn.fm/jgZMr.
Lahontan Gold Corp. is a Canadian mine development and mineral exploration company holding four top-tier gold and silver properties in Nevada. The Santa Fe Mine project covers 26.4 square kilometers and has a NI 43-101 compliant resource estimate. The technical content of this news release has been reviewed and approved by Michael Lindholm, CPG, an independent consulting geologist and Qualified Person. Investors can find the latest news and updates on the company at http://ibn.fm/LGCXF.
