Lahontan Gold raising $13.9 million from upsized financing
Lahontan Gold Corp. [LG-TSXV, LGCXF-OTCQB, Y2F-FSE] said Tuesday it is upsizing a non-brokered private placement financing that is now expected to raise $13.9 million with part of the proceeds earmarked for exploration at the company’s Santa Fe Mine and West Santa Fe projects in Nevada. That is up from an earlier $10 million target.
Lahontan shares advanced on the news, rising 3.5% or $0.013 to 37.2 cents. The shares trade in a 52-week range of 52 cents and $0.045.
Lahontan is a Canadian mine development and mineral exploration company that holds, through its U.S. subsidiaries, four gold and silver exploration properties in the Walker Lane area of Nevada. The flagship, 28.3-square kilometre Santa Fe Mine project, had past production of 359,202 ounces of gold and 702,067 ounces of silver between 1988 and 1995 from open pit mines utilizing heap-leach processing.
The Santa Fe Mine has a National Instrument 43-101-compliant indicated resource of 1.54 million ounces of gold equivalent (AuEq) (48.4 million tonnes of grade 0.92 g/t gold and 7.18 g/t silver, together grading 0.99 g/t AuEq) and an inferred resource of 411,000 ounces of AuEq (16.7 million tonnes of grade 0.74 g/t gold and 3.25 g/t silver, together grading 0.76 g/t AuEq), all pit constrained.
The company plans to continue advancing the Santa Fe Mine project towards production, update the preliminary economic assessment and drill test its satellite Santa Fe West project. In a recent press release, the company said it has mobilized a track-mounted reverse-circulation drill rig and crew to the Santa Fe Mine project. The aim is to augment the diamond drill rig currently operating at Santa Fe with a focus on drilling areas of the project that have seen little or no exploration drilling.
Meanwhile, the Lahontan said the upsized placement will consist of 33.9 million units priced at 41 cents per unit. It said each unit will consist of one common share and one half of a common share purchase warrant. Each warrant entitles the holder to purchase one common share for 60 cents for two years from the date of issuance, However, the company can accelerate the expiry date if the warrants if the closing price of the shares is equal to or exceeds $1.0 for 10 consecutive trading days on the TSX Venture Exchange following the date that is four months and one day after the date of issuance.
“Lahontan Gold is very pleased with the overwhelming support for this equity financing from existing shareholders, institutional investors, and new individual investors who clearly see and understand the path forward with the Santa Fe mine and West Santa Fe projects in mining friendly Nevada,’’ said Lahontan Executive Chair, CEO, President and founder Kimberly Ann. “We continue to aggressively pursue mine operating permits and new step-out drilling at Santa Fe, while preparing for additional drilling at our exciting West Santa Fe project. 2026 promises to be a transformative year for Lahontan and we look forward to continued success at all our projects.’’