Lucky Minerals (TSX-V:LKY, OTC:LKMNF) Inc has announced a non-brokered private placement consisting of 43,750,000 units of the company at a price of C$0.08 per unit to raise gross proceeds of C$3.5 million, to be used to complete the very first drill program on its Fortuna gold and copper project in Ecuador and for general working capital.
“The drill program is expected to be approximately 3,000 meters and is a follow up to the recent discoveries made during the surface exploration work over the past 18 months,” the company said in a statement. This includes Wayka's trench T6, which sampled 17.63 grams per tonne (g/t) gold over 3 meters (m).
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The Ecuador-focused exploration and development company said that each unit consists of one common share of the company and one share purchase warrant. Each warrant will be exercisable to acquire a share at a price of C$0.15 per share for a period of 24 months from the date of issuance. All the shares and warrants issued are subject to a statutory hold period expiring four months and one day from the date of issuance.
“The company has already obtained commitments exceeding C$2.5 million and expects to close a first tranche by September 3, 2021,” said the company. The second and final tranche is expected to close in the following weeks.
Lucky Minerals (TSX-V:LKY, OTC:LKMNF) thanked its US corporate advisor, EAS Advisors LLC, acting through Odeon Capital Group, for its assistance with the private placement.
The company said it may pay a finder's fees on a portion of the private placement in accordance with applicable securities laws.
The offering is subject to TSX Venture Exchange approval.
Contact the author Uttara Choudhury at uttara@proactiveinvestors.com
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