Lucky Minerals Inc (TSX-V:LKY, OTC:LKMNF) has announced the closing of a non-brokered private placement of 12,500,000 units at a price of C$0.056 each for gross proceeds of C$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.
Investors in the offering included Michael Gentile, who maintains his share position in the company at approximately 19.9% on a partially diluted basis. Gentile and certain directors, officers and insiders of the company acquired an aggregate of 2,928,557 units in the offering, which participation constituted a 'related party transaction' as defined under Multilateral Instrument 61-101 Protection of Minority Security Holders in Special Transactions (MI 61-101).
READ: Lucky Minerals arranges non-brokered private placement of units for gross proceeds of up to approximately $700,000
Each unit in the offering comprised 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 C$0.10 per share, until the date that is 36 months from the closing of the offering.
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 will pay no finder's fees in connection with subscriptions from subscribers introduced to this offering.
Lucky Minerals is an exploration and development company targeting large-scale mineral systems in proven districts with the potential to host world-class deposits. Lucky owns a 100% interest in the Fortuna Property.
The company's Fortuna Project comprises twelve contiguous, 550-square kilometres (55,000 hectares, or 136,000 acres) exploration concessions. Fortuna is located in a highly prospective, yet underexplored, gold belt in southern Ecuador.
Contact the author at jon.hopkins@proactiveinvestors.com