Lahontan Gold raising funds for advancing Santa Fe mine project, Nevada
Lahontan Gold Corp. [LG-TSXV; LGCXF-OTCQB] entered into an agreement with Beacon Securities Ltd. as sole bookrunner on behalf of a syndicate of agents, including Haywood Securities Inc. in connection with a commercially reasonable best-effort private placement of units of the company at a price of eight cents per unit for gross proceeds to the company of a minimum of $2 million.
Each unit will consist of one common share of the company and one transferable common share purchase warrant. Each warrant shall be exercisable to acquire one common share of the company at an exercise price of 12 cents at any time for 36 months after the closing date.
Net proceeds of the offering are expected to be used for exploration and development of the Santa Fe project and West Santa Fe project in Nevada and for working capital and general corporate purposes.
Closing of the offering is anticipated to occur around August 15, 2023, and is subject to certain conditions, including, but not limited to, the receipt of all necessary regulatory approvals, including the acceptance of the TSXV.
Lahontan Gold is a Canadian mineral exploration company that holds, through its U.S. subsidiaries, three top-tier gold and silver exploration properties in the Walker Lane of mining-friendly Nevada. Lahontan’s flagship property, the 19-km2 Santa Fe mine, had past production of 345,000 ounces of gold and 711,000 ounces of silver between 1988 and 1995 from open-pit mines utilizing heap leach processing. The Santa Fe mine has a NI 43-101 compliant indicated mineral resource of 1,112,000 ounces gold equivalent (grading 1.14 g/t AuEq) and an inferred mineral resource of 544,000 ounces gold equivalent (grading 1.00 g/t AuEq), all pit constrained (gold equivalent is inclusive of recovery). The company will continue to explore Santa Fe during 2023 and begin the process of evaluating development scenarios to bring the Santa Fe mine back into production.