Lahontan Gold Corp. (TSX.V: LG) (OTCQB: LGCXF) has closed an upsized non-brokered private placement, raising gross proceeds of $2,499,880.20 through the issuance of 16,665,868 units at $0.15 each. Each unit comprises one common share and one-half warrant, with each full warrant exercisable at $0.25 for two years, subject to an acceleration clause if the company's shares trade at $0.50 or more for 10 consecutive trading days. The financing, initially announced as a $2 million offering, was upsized due to strong investor demand.
The proceeds are earmarked for 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 Walker Lane trend, has a past production history of 359,202 ounces of gold and 702,067 ounces of silver from open pit heap-leach operations between 1988 and 1995. According to a NI 43-101 technical report effective December 10, 2024, the project hosts an indicated mineral resource of 1,539,000 ounces of gold equivalent (48,393,000 tonnes grading 0.92 g/t Au and 7.18 g/t Ag) and an inferred resource of 411,000 ounces of gold equivalent (16,760,000 tonnes grading 0.74 g/t Au and 3.25 g/t Ag).
“The successful closing of this upsized financing reflects strong support from investors who recognize the potential of our Santa Fe project,” said a company spokesperson. “These funds will allow us to advance exploration and continue de-risking the project as we work towards an updated preliminary economic assessment.”
The offering included $28,910.39 in finder fees and the issuance of 192,735 broker warrants on the same accelerated-term structure. The placement constituted a related party transaction as defined under MI 61-101, but was exempt from formal valuation and minority approval requirements due to the involvement of certain insiders subscribing for less than 25% of the offering’s market capitalization.
Lahontan Gold Corp. holds four top-tier gold and silver exploration properties in Nevada’s Walker Lane, with the Santa Fe Mine being its flagship. The company plans to update the preliminary economic assessment and drill test the West Santa Fe satellite project during 2025. The technical content of this release has been reviewed by Michael Lindholm, CPG, an independent consulting geologist and qualified person under NI 43-101.
For more information about Lahontan Gold Corp., visit the company’s website at www.lahontangoldcorp.com. The full press release is available at https://ibn.fm/jgZMr.
