Lahontan Gold Corp. Secures $2.5 Million in Upsized Private Placement to Advance Nevada Mining Projects
TL;DR
Lahontan Gold's $2.5 million private placement provides capital to advance exploration, potentially increasing shareholder value through resource development at their Nevada properties.
Lahontan Gold issued 16.67 million units at $0.15 each, consisting of one share and half-warrant exercisable at $0.25 for two years with acceleration clauses.
Lahontan Gold's funding supports responsible mineral exploration that could create jobs and contribute to sustainable resource development in mining-friendly Nevada communities.
Lahontan Gold's Santa Fe Mine previously produced over 359,000 ounces of gold and now holds 1.54 million indicated gold equivalent ounces in Nevada.
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Lahontan Gold Corp. (TSX.V: LG) (OTCQB: LGCXF) has completed an upsized non-brokered private placement, raising $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 full warrant exercisable at $0.25 for a period of two years, subject to an acceleration clause. The successful financing represents a significant capital infusion for the Canadian mineral exploration company.
The proceeds from this offering are designated to support general working capital requirements and fund exploration activities at the company's Santa Fe Mine and West Santa Fe Projects in Nevada's Walker Lane mineral belt. This strategic allocation of funds underscores the company's commitment to advancing its flagship properties toward production. The financing included $28,910.39 in finder fees and the issuance of 192,735 broker warrants, which follow the same accelerated-term structure as the primary offering.
Lahontan Gold holds four premium gold and silver exploration properties through its US subsidiaries, with the Santa Fe Mine project serving as the company's flagship asset. Historical production at the Santa Fe Mine between 1988 and 1995 yielded 359,202 ounces of gold and 702,067 ounces of silver from open pit operations using heap-leach processing methods. The property spans 26.4 square kilometers and contains substantial mineral resources compliant with Canadian National Instrument 43-101 standards.
The Santa Fe Mine currently hosts an Indicated Mineral Resource of 1,539,000 ounces of gold equivalent and an Inferred Mineral Resource of 411,000 ounces of gold equivalent. These resources are pit-constrained and represent significant potential for future development. The company's technical disclosure has been reviewed and approved by Michael Lindholm, CPG, an Independent Consulting Geologist who serves as a Qualified Person as defined in National Instrument 43-101.
For additional technical details, investors can review the Preliminary Economic Assessment available at https://ibn.fm/jgZMr. The company plans to utilize the newly raised capital to advance the Santa Fe Mine project toward production, update the Santa Fe Preliminary Economic Assessment, and conduct drill testing at the satellite West Santa Fe project during 2025. These developments could significantly impact the mining sector by bringing additional gold and silver resources into production in one of North America's most productive mining jurisdictions.
The successful completion of this upsized private placement demonstrates strong investor confidence in Lahontan Gold's development strategy and the potential of its Nevada properties. For ongoing updates and corporate information, the company maintains its corporate website at https://www.lahontangoldcorp.com. The transaction constituted a related party transaction that was exempt from MI 61-101 valuation and minority approval requirements, streamlining the financing process while maintaining regulatory compliance.
Curated from InvestorBrandNetwork (IBN)
