Lahontan Gold raises $2.5 million in upsized private placement

Lahontan Gold Corp. (TSXV:LG)(OTCQB: LGCXF) closed a non-brokered private placement, raising $2,499,880.20 through the issuance of 16,665,868 units at $0.15 per unit. The company increased the offering size from 13,333,333 units due to investor demand.

Each unit comprises one common share and one-half of one warrant. The warrants allow holders to purchase common shares at $0.25 per share for two years from issuance. The company may accelerate warrant expiration to 30 business days if shares trade at or above $0.35 for 10 consecutive trading days after the four-month hold period.

Lahontan will use proceeds for general working capital and exploration at its Santa Fe Mine and West Santa Fe Projects in Nevada. The securities are subject to a four-month hold period plus one day from issuance.

The company paid $28,910.39 in finder fees and issued 192,735 broker warrants with the same terms as the unit warrants. A company insider purchased 300,000 units, making this a related party transaction under TSX Venture Exchange policies.

The Santa Fe Mine project previously produced 359,202 ounces of gold and 702,067 ounces of silver between 1988 and 1995. The property has an indicated mineral resource of 1,539,000 ounces gold equivalent and an inferred resource of 411,000 ounces gold equivalent, according to a National Instrument 43-101 compliant report.

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