Lucky Minerals (TSX-V:LKY, OTC:LKMNF) Inc has announced the closing of a non-brokered private placement of 35,714,286 units of the company at a price of C$0.056 per unit for gross proceeds of C$2 million.
The company said the net proceeds of the offering will be used to support the first drill program on its Fortuna Project in Ecuador and for general working capital purposes.
Each unit in the offering is comprised of one common share and one full three-year common share purchase warrant. Each warrant entitles the holder thereof to acquire one additional share at a price of C$0.10 each, until the date that is 36 months from the closing of the offering.
Investors in the offering include Michael Gentile and Victor Cantore who now respectively have ownership in the company of approximately 18.5% and approximately 7.4% on a partially diluted basis.
READ: Lucky Minerals increases non-brokered private placement to gross proceeds of up to $2.0M, adds another experienced investor
Officers, directors and insiders, of the company, which include Gentile, participated in the offering and have subscribed for an aggregate of 13,308,893 units, raising a total of C$ $745,298 under the offering.
All the shares and 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.
The company will pay no finder's fees in connection with subscriptions from subscribers introduced to this offering.
Lucky Minerals is an exploration and development company targeting large-scale mineral systems in proven districts with the potential to host world-class deposits.
The company owns a 100% interest in the Fortuna Property which is comprised of twelve contiguous, 550 km2 (55,000 hectares, or 136,000 acres) exploration concessions. Fortuna is located in a highly prospective, yet underexplored, gold belt in southern Ecuador.
Contact the author at jon.hopkins@proactiveinvestors.com