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Lode Gold Resources Inc
Symbol LOD
Shares Issued 278,334,579
Close 2024-02-29 C$ 0.025
Market Cap C$ 6,958,364
Recent Sedar Documents

Lode Gold closes $1.43-million 1st tranche of financing

2024-03-01 14:32 ET - News Release

Mr. Hashim Ahmed reports

LODE GOLD (FORMERLY STRATABOUND) CLOSES FIRST TRANCHE OF FINANCING FOR $1.43 MILLION

Lode Gold Resources Inc. has accepted subscriptions for the first tranche of its previously announced non-brokered financing designated to close on March 5, 2024.

The company has received 100-per-cent participation in the private placement from all board members and management, making it a related party transaction. The company has relied on the exemptions from the valuation and minority shareholder approval requirements of MI 61-101 contained in sections 5.5(a) and 5.7(a) of MI 61-101 in respect of such insider participation.

The company received subscription agreements for aggregate proceeds of $1,432,652.50 for the issuance of 57,306,100 units of the company at 2.5 cents per unit. Each unit consists 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 five cents per common share for a period of two years following the date of closing. The company may accelerate the expiry date if the shares trade at 30 cents or more for a period of 10 days, including days where no trading occurs. Securities issued on this proposed closing will be subject to a statutory hold period of four months and one day. The closing of the financing is subject to TSX Venture Exchange final approval.

Ron Tomlinson, chief executive officer of Tomlinson Group, stated, "We have renewed confidence in our new management team and Lode Gold's vision and thus are stepping up to fund the company's 2024 plans."

Chad Tappendorf, managing director of Coast Capital LLC, added, "With an invigorated new team at the helm, we are affirming our commitment to Lode Gold and maintaining our shareholding with an upsized investment."

Hashim Ahmed, Lode Gold's chairman, commented: "The quick close of the financing is a testament to renewed momentum and strategy that new management and advisers have brought into Lode Gold. We are on track and actively executing our restructuring, growth strategy and plans."

About Lode Gold Resources Inc.

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 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. Gold deposits and occurrences within the belt include Fort Knox, Pogo, Brewery Creek, Dublin Gulch and Snowline Gold's Valley target on its Rogue property in the Selwyn basin.

Its McIntyre Brook project in New Brunswick, covering 120 square kilometres and a 17-kilometre strike length in the emerging Triple Fault gold belt, is surrounded by Puma Exploration's Williams Brook project (5.55 grams per tonne gold over 50 metres) 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 million ounces of gold have been produced. Fremont, located approximately 500 kilometres north of Equinox Gold's Castle Mountain and Mesquite mines, has a PEA (preliminary economic assessment) with an after-tax NPV (net present value) of $217-million (U.S.), a 21-per-cent IRR (internal rate of return) and an 11-year LOM (life of mine), averaging 118,000 ounces per annum at $1,750 (U.S.) per ounce gold. The project hosts a National Instrument 43-101 resource of 1.16 million ounces at 1.90 g/t Au within 19.0 million tonnes indicated and 2.02 million ounces at 2.22 g/t Au within 28.3 million tonnes inferred. A sensitivity to the March 31, 2023, PEA at $2,000 (U.S.) per ounce gold gives an after-tax NPV of $370-million (U.S.) and a 31-per-cent IRR over an 11-year LOM. The MRE evaluates only 1.4 km of the four-kilometre strike length of the Fremont property that features four gold-mineralized zones. Significantly, three stepout 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, Calif. 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, PEng, FEC, CET, and Andrew Bradfield, PEng, both of P&E, and Travis Manning, PE, 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 in 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 (honours) (economic geology -- UCT), FAusIMM, who is a qualified person as defined by NI 43-101, Standards of Disclosure for Mineral Projects.

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