Lode Gold Resources Inc. has arranged a non-brokered financing for $350,000 by issuing 1,944,444 units at 18 cents per unit.
Each 18-cent unit shall consist of one common share and one common share purchase warrant. Each warrant shall entitle the holder to purchase one common share at an exercise price of 35 cents per common share for a period of three years following the date of closing.
The company may accelerate the expiry date if the shares trade at 65 cents or more for a period of 10 days, including days where no trading occurs. The closing of the offering is expected to occur one business day following receipt of all required regulatory approvals.
The proceeds raised from the offering will go toward corporate purposes, as well as general working capital. The company will pay finders’ fees to eligible arm’s-length persons with respect to subscriptions accepted by the company.
About Lode Gold Resources Inc.
Lode Gold is an exploration and development company with projects in highly prospective and safe mining jurisdictions in Canada and the United States.
In Canada, its Golden Culvert and Win projects in Yukon, covering 99.5 square kilometres across a 27-kilometre strike length, are situated in a district-scale, high-grade gold mineralized trend within the southern portion of the Tombstone gold belt. A total of four reduced intrusion-related gold system targets have been confirmed on the property. A National Instrument 43-101 technical report was completed in May, 2024.
In New Brunswick, Lode Gold has created one of the largest land packages with its Acadian gold joint venture company, consisting of an area that spans 420 square kilometres and a 42-kilometre strike. McIntyre Brook covers 111 square kilometres and a 17-kilometre strike in the emerging Appalachian/Iapetus gold belt. It is hosted by orogenic rocks of similar age and structure as New Found Gold’s Queensway project. Riley Brook is a 309-square-kilometre package covering a 25-kilometre strike of the Wapske formation with its numerous felsic units. An NI 43-101 technical report was completed in August, 2024.
In the United States, the company is advancing its Fremont gold project. This is a brownfield project with over 43,000 metres drilled and 23 kilometres of underground workings. It was previously mined at eigh grams per tonne gold in the 1940s.
Mining was halted in 1942 due to the gold prohibition in the Second World War just as it was ramping up production. Unlike typical brownfield projects that are mined out, only 11 per cent of the veins — in two out of seven deposits have been exploited. The company is the first owner to investigate an underground high-grade mine potential at Fremont.
The project is located on 3,351 acres of private and patented land in Mariposa county. The asset is a four-kilometre strike on the prolific 190-kilometre Mother Lode gold belt, California, that produced over 50 million ounces of gold and is instrumental in the creation of the towns, the businesses and infrastructure in the 1800s gold rush. It is 1.5 hours from Fresno, Calif. The property has year-round road access, and is close to airports and rail.
Previously, in March, 2023, the company completed an NI 43 101 preliminary economic assessment. Project valuation has an after-tax net present value discounted at 5 per cent of $370-million (U.S.) at $2,000 per ounce gold, an internal rate of return of 31 per cent and an 11-year life of mine, averaging 118,000 oz per year. At $1,750 per oz gold, NPV (5 per cent) is $217-million. The project hosts an NI 43-101 resource of 1.16 million ounces at 1.90 g/t Au within 19.0 million tonnes indicated and 2.02 Moz at 2.22 g/t Au within 28.3 MT inferred. The mineral resource estimate evaluates only 1.4 km of the four-kilometre strike of the Fremont property. Three stepout holes at depth (up to 1,200 m) hit structure and were mineralized.
All NI 43-101 technical reports are available on the company’s profile on SEDAR+ and the company’s website.
Qualified person statement
The scientific and technical information contained in this press release has been reviewed and approved by Jonathan Victor Hill, director, BSc (honours) (economic geology — UCT), FAusIMM, who is a qualified person as defined by NI 43-101.
ON BEHALF OF THE COMPANY
Wendy T. Chan, CEO & Director
Information Contact
Winfield Ding
CFO
info@lode-gold.com
+1-(604)-977-4653
Kevin Shum
Investor Relations
kevin@lode-gold.com
+1 (647) 725-3888 ext. 702
Cautionary Note Related to this News Release and Figures
This news release contains information about adjacent properties on which the Company has no right to explore or mine. Readers are cautioned that mineral deposits on adjacent properties are not indicative of mineral deposits on the Company’s properties.
Cautionary Statement Regarding Forward-Looking Information
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.
This news release includes “forward-looking statements” and “forward-looking information” within the meaning of Canadian securities legislation. All statements included in this news release, other than statements of historical fact, are forward-looking statements including, without limitation, statements with respect to the completion of the transaction and the timing thereof, the expected benefits of the transaction to shareholders of the Company, the structure, terms and conditions of the transaction and the execution of a definitive agreement, the timing of submission to the CSE and TSXV, Gold Orogen raising an additional $1,500,000 and the anticipated use of proceeds. Forward-Looking statements include predictions, projections and forecasts and are often, but not always, identified by the use of words such as “anticipate”, “believe”, “plan”, “estimate”, “expect”, “potential”, “target”, “budget” and “intend” and statements that an event or result “may”, “will”, “should”, “could” or “might” occur or be achieved and other similar expressions and includes the negatives thereof.
Forward-Looking statements are based on a number of assumptions and estimates that, while considered reasonable by management based on the business and markets in which the Company operates, are inherently subject to significant operational, economic, and competitive uncertainties, risks and contingencies. These include assumptions regarding, among other things: that the Company and GRM will be able to negotiate the definitive agreement on the terms and within the time frame expected, that the Company and GRM will be able to make submissions to the CSE and TSXV within the time frame expected, that the Company and GRM will be able to obtain shareholder approval for the transaction, that the Company and GRM will be able to obtain necessary third party and regulatory approvals required for the transaction, if completed, that the transaction will provide the expected benefits to the Company and its shareholders.
There can be no assurance that forward-looking statements will prove to be accurate and actual results, and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company’s expectations include adverse market conditions, general economic, market or business risks, unanticipated costs, the failure of the Company and GRM to negotiate the definitive agreement on the terms and conditions and within the timeframe expected, the failure of the Company and GRM to make submissions to the CSE and TSXV within the timeframe expected, the failure of the Company and GRM to obtain shareholder approval for the transaction, the failure of the Company and GRM to obtain all necessary approvals for the transaction, and r other risks detailed from time to time in the filings made by the Company with securities regulators, including those described under the heading “Risks and Uncertainties” in the Company’s most recently filed MD&A. The Company does not undertake to update or revise any forward-looking statements, except in accordance with applicable law.
