Lucky Minerals (TSX-V:LKY, OTC:LKMNF) Inc said it has closed a non-brokered private placement consisting of 22,353,278 units of the company at a price of C$0.09 per unit for gross proceeds of C$2,011,795.02.
The company said the net proceeds of the offering will be used to complete a 3,000 metre drill program on the company's Fortuna Project in Ecuador and for general working capital purposes.
Each unit in the private placement consists of one common share of the company and one transferable common share purchase warrant. Each warrant will be exercisable to acquire one common share at a price of C$0.20 each for a period of 24 months from the date of issuance of the warrant.
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In connection to the offering, the company paid finder's fees in cash of C$35,000 and issued 388,888 non-transferable compensation warrants. Each compensation warrant is exercisable into one common share at $0.15 per share until January 24, 2023.
In connection to the offering, Lance Hubbard subscribed for a total of 14,325,555 units, the company noted.
All of the common shares, warrants and compensation 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.
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 Fortuna Project is comprised of twelve contiguous, 550 square kilometres (55,000 hectares, or 136,000 acres) exploration concessions located in a highly prospective, yet underexplored, gold belt in southern Ecuador.
Contact the author at jon.hopkins@proactiveinvestors.com