Lode Gold Closes Second Tranche of Private Placement for Total Oversubscribed Financing of $2.08 Million
Lode Gold Closes Second Tranche of Private
Placement for Total Oversubscribed Financing
of $2.08 Million
Toronto, Ontario--(Newsfile Corp. - March 18, 2024) -
Lode Gold Resources Inc. (TSXV: LOD)
(OTCQB: SBMIF)
("Lode Gold" or the "Company" and formerly Stratabound Minerals) announces the
closing on March 18, 2024 of $656,721.70 (26,268,868 units) of its non-brokered private placement
("Private Placement") announced on January 3, 2024. Each unit consists of one common share and one
common share purchase warrant issued at a price of CDN $0.025 per unit.
Each common share
purchase warrant will entitle the holder thereof to purchase an additional one common share of the
Company at $0.05 (Canadian) per share for a period of 24 months from the closing date. The Company
may accelerate the expiry date if the shares trade at $0.30 or more for a period of 10 days, including
days where no trading occurs. This closing is subject to receipt of final approval from the TSX Venture
Exchange.
The Company closed the first tranche of $1,422,902.50 (56,916,100 units) on March 5, 2024. Total
amount raised was $2,079,624.20 (83,184,968 units).
Finders' fees of $9,800 and 392,000 broker
warrants on the same terms were issued to qualified finders. Securities issued pursuant to this final
tranche are subject to trading restrictions until July 18, 2024.
Insiders of the Company subscribed for an aggregate of 44,516,100 common shares of the Company.
The Company has relied on the exemptions from the valuation and minority shareholder approval
requirements of MI 61-101 contained in sections 5.5(b) and 5.7(a) of MI 61-101 in respect of such
insider participation.
The proceeds raised from the offering will go towards high resolution magnetics and drill targeting the
Company's McIntyre Brook property (New Brunswick), data review and targeting to leverage a new
RIRGS exploration model at Golden Culvert and Win projects (Southern Tombstone Gold Belt, Yukon),
and drill target generation testing a large, high-grade conceptual model at its Fremont Gold project
(Mother Lode Gold Belt, California).
Wendy T. Chan, CEO of Lode Gold comments, "Late last year, we devised a turnaround plan for the
Company. The strategy was well received by key shareholders with unanimous endorsement from the
Board. We are on track in executing our plans."
Hashim Ahmed, Chairman of Lode Gold notes, "We intended to raise $1.5 million to execute our plan,
overachieving with a $2-million financing. This is a testament to our team's leadership and ability to
execute. The pure-play exploration Spin Co will unlock the value of our assets, a new RIRGS target in
Yukon, and our property located in an emerging and highly prospective gold belt in New Brunswick."
ABOUT LODE GOLD
Lode Gold is a Canadian exploration and development company with grassroots and advanced
exploration properties in highly prospective and safe mining jurisdictions.
Its Golden Culvert and Win Projects, Yukon, covering 99.5 km
2
across a 27-km strike length,
are situated in a district-scale, high-grade-gold-mineralized trend within the southern portion of
the
Tombstone Gold Belt
. Gold deposits and occurrences within the Belt include Fort Knox, Pogo,
Brewery Creek and Dublin Gulch, and Snowline Gold's Valley target on its Rogue property in the Selwyn
Basin.
Its
McIntyre Brook Project, New Brunswick, covering 120 km
2
and a 17-km strike length in the
emerging Triple Fault Gold Belt
, is surrounded by Puma Exploration's Williams Brook Project (5.55
g/t Au over 50m) and is hosted by orogenic rocks of similar age and structure as New Found Gold's
Queensway Project.
The Company is also advancing its
Fremont Gold development project in the historic Mother Lode
Gold Belt of California where 50,000,000 oz of gold has been produced.
Fremont, located
~500km north of Equinox Gold's Castle Mountain and Mesquite mines, has a PEA with an after-tax
NPV(5%) of USD $217MM, a 21% IRR, 11-year LOM, averaging 118k ounces per annum at USD
$1,750 gold. A sensitivity to the March 31, 2023 PEA at USD $2,000/oz gold gives an after-tax
NPV(5%) of USD $370MM and a 31% IRR over an 11-year LOM. The project hosts an NI 43-101
resource of 1.16 Moz at 1.90 g/t Au within 19.0 MT Indicated, and 2.02 Moz at 2.22 g/t Au within 28.3 MT
Inferred.
The MRE evaluates only 1.4 km of the 4 km strike length of the Fremont property that
features 4 gold-mineralized zones.
Significantly, three step-out holes at depth hit structure,
typical of orogenic deposits that often occur at depth
.
Fremont is located on private land
in
Mariposa, the original gold rush county and is 1.5 hours from Fresno, California
. The property
has year-round road access and is close to airports and rail. Please refer to the Fremont Gold project
PEA dated March 31, 2023 under NI 43-101 guidelines. The technical report has been reviewed and
approved by independent "Qualified Persons" Eugene Puritch, P.Eng., FEC, CET, and Andrew
Bradfield, P.Eng. both of P&E, and Travis Manning, P.E. of KCA.
The Company also holds a pipeline of early-stage exploration projects including the critical mineral
Captain Cobalt-Copper-Gold Deposit in New Brunswick and the Dingman Gold Project, Ontario.
QUALIFIED PERSON STATEMENT
The scientific and technical information contained in this press release has been reviewed and approved
by Jonathan Victor Hill, Director, BSc (Hons) (Economic Geology - UCT), FAusIMM, and who is a
"qualified person" as defined by National Instrument 43-101 - Standards of Disclosure for Mineral
Projects ("NI 43-101").
For more information, please visit the Company's website at
www.stratabound.com
or contact:
Gary Nassif
Senior Vice President,
+1 (416) 915-4157
Kevin Shum
Director Investor Relations
+1 (647) 725-3888 ext. 702
Forward-Looking Statements
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this
release.
WARNING:
The Company relies upon litigation protection for "forward-looking" statements. The
information in this release may contain forward-looking information under applicable securities laws.
This forward-looking information is subject to known and unknown risks, uncertainties and other factors
that may cause actual results to differ materially from those implied by the forward-looking information.
Factors that may cause actual results to vary materially include, but are not limited to, inaccurate
assumptions concerning the exploration for and development of mineral deposits, currency fluctuations,
unanticipated operational or technical difficulties, changes in laws or regulations, failure to obtain
regulatory, exchange or shareholder approval, the risks of obtaining necessary licenses and permits,
changes in general economic conditions or conditions in the financial markets and the inability to raise
additional financing. Readers are cautioned not to place undue reliance on this forward-looking
information. The Company does not assume the obligation to revise or update this forward-looking
information after the date of this release or to revise such information to reflect the occurrence of future
unanticipated events, except as may be required under applicable securities laws.
To view the source version of this press release, please visit
https://www.newsfilecorp.com/release/202228