Lode Gold plans $7M private placement with Coast Capital follow-on

Lode Gold Resources Inc. (TSXV: LOD) (OTCQB: LODFF) announced a non-brokered private placement of up to $7,000,000 through the issuance of up to 25,925,926 units at $0.27 per unit, according to a company statement.

Coast Capital LLC, a New York-based natural resources investment firm that currently holds over 18% of the company, will participate in the offering and intends to increase its stake to approximately 19.9% upon closing.

Each unit consists of one common share and one common share purchase warrant. Each warrant allows the holder to purchase one additional share at $0.45 per share for three years following issuance. The company may accelerate the expiry date if shares trade at $0.80 or higher for 10 consecutive trading days.

Proceeds are designated for technical work at the Fremont Gold Mine in Mariposa, California, balance sheet strengthening, and general working capital. Planned technical work includes a drill program in support of a Preliminary Feasibility Study, along with metallurgical, geotechnical, and rock mechanic studies. The company also plans to develop an initial mine plan to begin environmental and permitting work later this year.

Lode Gold said it may pay finders' fees to eligible arm's-length parties in connection with the offering.

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