Lucky Minerals Inc.(CVE:LKY) said it has closed the first tranche of a previously announced private placement, issuing 24,795,600 units for total proceeds of $1,983,648.
In aggregate, the private placement will see the issue of up to 62.5 million units of the company at a price of C$0.8 cents per unit for gross proceeds of up to $5 million.
The company intends to use the net proceeds of the offering for exploration expenditures on the Fortuna Property in southern Ecuador as well as working capital and general corporate purposes.
READ: Lucky Minerals set for up to C$5M raise to advance Fortuna property
Each unit in the placement consists of one common share of the company and one common share purchase warrant exercisable into one common share for a period of 24 months from the closing date at an exercise price of C$0.15 cents per warrant.
A cash commission of $74,085 and warrants to purchase 926,060 units is payable, with the compensation warrants exercisable for a period of 12 months following the closing date at an exercise price equal to the offering price.
All securities issued under the first tranche closing will be subject to a four-month hold period ending on June 18, 2021, in accordance with applicable Canadian securities laws.
Lucky Minerals is an exploration and development company targeting large-scale mineral systems in proven districts with the potential to host world-class deposits. It owns a 100% interest in the Fortuna property in Ecuador, which is its primary exploration project.
The Fortuna Project is a royalty-free 550 square kilometre exploration concession located in a highly prospective, yet underexplored, gold belt in southern Ecuador. Lucky has entered into a memorandum of understanding on Fortuna with First Quantum Minerals Ltd. whereby First Quantum is able to earn up to 70% on primary copper targets.
Contact the author at jon.hopkins@proactiveinvestors.com