Lumina Gold Corp (TSX-V:LUM, OTCQX:LMGDF) announced it has closed its C$19 million financing to advance its Cangrejos project in Ecuador.
Shareholder and mining impresario Ross Beaty upped his ownership position in the company to just under 20%.
In a statement, Lumina said that it had concurrently converted C$5.2 million of its existing credit facility with Beaty into shares at the offering price of the financing, which was C$0.60. The conversion takes Beaty from a 19.79% ownership stake to a 19.98% ownership stake.
READ: Ecuador Mineral Exploration – A Land of Plenty with Plenty More to Come
The outstanding principal and interest remaining on the facility is approximately C$700,000, according to Lumina.
Beaty said in a statement that he was “happy” to increase his ownership position in the company and will continue to fully support Lumina.
“Cangrejos is a world class gold deposit with tremendous scale and a long mine life,” Beaty added. “Additional drilling and a pre-feasibility study will enhance the project and take it one step closer to becoming a mine.”
Lumina said it plans to submit for approval from disinterested shareholders at its annual general and special meeting of shareholders scheduled for November 23 for the creation of a “control person”. If this approval, along with the approval of the TSX Venture Exchange is obtained, Ross Beaty plans to convert the remaining outstanding principal and interest on the facility into shares and may acquire additional shares in the company.
Under the terms of the financing, Vancouver-based Lumina sold 16,179,500 shares priced at C$0.60 per share under the brokered portion of the offering, and another 15,468,111 shares under the non-brokered portion.
The firm plans to use the net proceeds from the offering for infill drilling, step-out drilling and pre-feasibility work at Cangrejos and for general corporate purposes.
Lumina said that drilling is expected to start in November and take approximately nine months, with a pre-feasibility study to be completed thereafter.
The Cangrejos gold-copper project is Ecuador’s largest primary gold deposit located in El Oro province, southwest Ecuador.
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