Lahontan Gold Corp. (TSXV: LG) (OTCQB: LGCXF) (FSE: Y2F) completed the first tranche of its non-brokered private placement, raising CAD$10,377,200 through the issuance of 25,310,244 units at CAD$0.41 per unit.

Each unit consists of one common share and one-half of a share purchase warrant. The warrants allow holders to purchase common shares at CAD$0.60 each for two years from issuance. The company can accelerate warrant expiry to 30 business days if shares trade at or above CAD$1.00 for 10 consecutive trading days after a four-month-and-one-day period.

The company plans to use proceeds for exploration at its Santa Fe Mine and West Santa Fe Projects, plus general working capital. All securities carry a four-month-plus-one-day hold period under Canadian securities legislation.

The offering included a related party transaction as a company insider purchased 60,000 units. Lahontan relied on exemptions under Multilateral Instrument 61-101 since it trades on an unspecified market and the insider participation remained under 25% of market capitalization.

Lahontan operates four gold and silver exploration properties in Nevada's Walker Lane. Its flagship Santa Fe Mine project produced 359,202 ounces of gold and 702,067 ounces of silver between 1988 and 1995. The property holds indicated mineral resources of 1,539,000 ounces of gold equivalent and inferred resources of 411,000 ounces of gold equivalent under Canadian National Instrument 43-101 standards.