Lucky Minerals (TSX-V:LKY, OTC:LKMNF) Inc has announced a strategic partnership with Hubbard Drilling Services ahead on an upcoming drill program at the Wayka gold discovery on its Fortuna project in 2022.
The firm also announced a non-brokered private placement to raise just over C$2 million to support its drill program.
Under the partnership, Vancouver-based Lucky said it inked a non-binding letter of intent with Hubbard’s Ecuadorian subsidiary for drilling services, to be satisfied in Lucky shares.
READ: Lucky Minerals reports more trench sample results from Wayka gold discovery ahead of scout drilling start
As for the private placement terms, the company will raise up to C$2,011,795 through the issuance of 22,353,278 units of the company at C$0.09 per unit. Each unit consists of one common share and one full two-year common share purchase warrant, exercisable at a price of C$0.20 per share.
A strategic partner related to Hubbard Drilling will participate in the financing, according to Lucky.
The move “places Lucky on solid ground ahead” of its upcoming drilling program, CEO François Perron told shareholders.
“Our treasury will be bolstered by these additional investors and combined with the shares for drilling services agreement will allow the drilling to continue beyond our initial proposed program of 3,000 metres,” Perron said in a statement. “Our work in the field continues to advance and we now expect to begin drilling at Wayka in the first quarter of 2022.”
The Fortuna project is comprised of 12 contiguous, 55,000 hectares (136,000 acres) exploration concessions. Fortuna is located in a highly prospective, yet underexplored, gold belt in southern Ecuador.
Contact Angela at angela@proactiveinvestors.com
Follow her on Twitter @AHarmantas