Lucky Minerals Inc (TSX-V:LKY, OTC:LKMNF) said it has arranged a non-brokered private placement of up to 12.5 million units at a price of 5.6 cents per unit for gross proceeds of up to approximately $700,000.
The net proceeds of the offering will be used to support the drill program at the company's Fortuna project in Ecuador and for general working capital purposes, the company said.
Each unit of the offering is comprised of one common share and one full three-year transferable common share purchase warrant. Each warrant entitles the holder to acquire one additional share at a price of 10 cents per share, until the date that is 36 months from the closing of the offering.
READ: Lucky Minerals reports encouraging exploration results from Kelly Zone at Wayka gold discovery at Fortuna project
Investors in the offering will include Michael Gentile, who will maintain his share position in the company at 19.9% on a partially diluted basis. Gentile's participation in the private placement constitutes a related party transaction under Multilateral Instrument 61-101 -- Protection of Minority Security Holders in Special Transactions (MI 61-101).
All the shares and warrants issued in connection to the offering are subject to a statutory hold period expiring four months and one day from the date of issuance.
The company may pay finders' fees on a portion of the offering in accordance with applicable securities laws and the policies of the TSX Venture Exchange. The offering is subject to TSX Venture Exchange approval.
Lucky Minerals is an exploration and development company targeting large-scale mineral systems in proven districts with the potential to host world-class deposits. The company owns a 100% interest in the Fortuna project which comprises 12 contiguous, 550-square-kilometre (55,000-hectare or 136,000-acre) exploration concessions. Fortuna is located in a highly prospective, yet underexplored, gold belt in southern Ecuador.
Contact the author at jon.hopkins@proactiveinvestors.com