Lavras Gold aims to raise $13 million from upsized offering
Lavras Gold Corp. [LGC-TSXV, LGCFF-OTCQX] is upsizing a previously announced best efforts public offering that now aims to raise just over $13 million, with proceeds earmarked for exploration and development of its Lavras do Sol (LDS) project in southern Brazil. That’s up from the earlier $10 million target.
The upsized offering will consist of 5.9 million common shares priced at $2.20 per share. In connection with the offering, the company has stuck a deal with two investment firms who will act as co-lead agents and joint bookrunners on behalf of a syndicate of agents.
On Friday, the shares eased 4.95% or 12 cents to $2.30. The shares trade in a 52-week range of $2.89 and 75 cents.
The project is located in Rio Grande do Sul state and is primarily an intrusive hosted gold system of possible alkaline affinity. More than 24 gold prospects centred on the historic gold workings have been identified on the property, which spans more than 23,000 hectares. mineral properties for the sale of 4.54 million common shares.
The company will grant the agents an option to sell the number of shares equal to an additional 15% of the shares sold at the offering price to cover overallotments, if any. That option is exercisable in whole or in part for up to 30 days following the closing of the offering, likely on February 6, 2025.
The LDS project is centred on the town of Lavras do Sul in Rio Grande do Sul, approximately 320 kilometres from the state capital at Porto Alegre. The most advanced targets are the Butia and Cerrito Gold Deposits. Butia has a mineral resource estimate of 377,000 ounces of gold, measured and indicated, and 114,100 ounces of gold, inferred. Cerrito has mineral resource estimate of 188,000 ounces of gold (indicated) and 293,500 ounces inferred.
The company’s short-term goal is to define an economically viable gold project at Butia and Fazenda dos Posto, also part of the LDS project.
The company recently announced the results of three new drill holes that tested the Olaria Gold Target located within the central portion of the Lavras do Sul Intrusive Complex of the LDS project. Gold mineralization was intersected in all three of the new holes reported in as December,2, 2024 news release. The Olaria target is located approximately 3.0 kilometres to the north of the  Butia Gold Deposit, and is situated within the larger Caneleira Mining Concession.
The purpose of these drill holes was two fold. The first was to test the downdip potential of an historical drill hole [LDH-105] drilled in 2017 by a predecessor company that tested the Olaria Gold Target along a postulated east-west structure. The second purpose was to test for gold mineralization across a reinterpreted northeast-southwest trending structure.
Historical drill hole LDH-105 was drilled in an azimuth of 220 degrees and encountered nine discrete intervals of gold mineralization ranging from 1.00 metre to 12 metres with gold grades ranging from 0.4 g/t gold to 4.5 g/t gold. The best intercept was 12 metres of 4.5 g/t gold from 26 metres.