Lucky Minerals Announces Closing of Second and Final Tranche of Non-Brokered Private Placement Units

Rhea-AI Summary

Lucky Minerals Inc. (OTC Pink:LKMNF) has completed the second tranche of its private placement, raising $464,800 through the issuance of 5,810,000 units at $0.08 each. This brings the total raised from the offering to $2,448,448. Each unit comprises one common share and a warrant exercisable at $0.15 until February 19, 2023. The proceeds will fund exploration at the Fortuna Project in Ecuador and general working capital. Notably, the company has established a MOU with First Quantum Minerals Ltd. regarding copper targets within Fortuna.

Positive

• Raised $464,800 in the second tranche of a private placement.
• Total funds raised amount to $2,448,448, providing significant capital for operations.
• Funding will support exploration on the Fortuna Project, which is in a promising gold belt.
• Partnership with First Quantum Minerals Ltd. could enhance the project's value.

Negative

• None.

VANCOUVER, BC / ACCESSWIRE / February 22, 2021 / Lucky Minerals Inc. (TSXV:LKY)(OTC Pink:LKMNF)(FRA:LKY) ("Lucky" or the "Company") is pleased to announce that, further to its news releases of January 13, 2021 and February 17, 2021, it has completed the second tranche of its private placement (the "Offering") for gross proceeds of $464,800. The second tranche closing consisted of 5,810,000 units (the "Units") at a price of $0.08 per Unit. Each Unit consists of one common share in the capital of the Company (a "Share") and one share purchase warrant (a "Warrant"). Each Warrant will entitle the holder to purchase one Share at a price of $0.15 exercisable until February 19, 2023. The Company has raised a total of $2,448,448 under the two tranches of the Offering.

All securities issued in connection with this second tranche closing are subject to a hold period of four months plus a day, expiring June 20, 2021 in accordance with applicable securities legislation. In connection with the second tranche of the offering, the Company paid finder's fees consisting of a cash commission of $19,684 and 246,050 compensation warrants (the "Compensation Warrants"). Each Compensation Warrant is exercisable into one Share at $0.08 per share until February 19, 2022.

The net proceeds of the second tranche of the Offering will be used for exploration on the Company's Fortuna Project in Ecuador and general working capital.

About Lucky

Lucky is an exploration and development company targeting large-scale mineral systems in proven districts with the potential to host world class deposits. Lucky owns a 100% interest in the Fortuna property in Ecuador, which is its primary exploration project.

The Company's Fortuna Project is a royalty-free 550km² (55,000 Ha, or 136,000 Acres) exploration concession. Fortuna is located in a highly prospective, yet underexplored, gold belt in southern Ecuador. Lucky has entered into a memorandum of understanding on Fortuna with First Quantum Minerals Ltd. ("First Quantum") whereby First Quantum is able to earn up to 70% on primary copper targets.

ON BEHALF OF THE BOARD

"Francois Perron"
Chief Executive Officer

This news release does not constitute an offer to sell or a solicitation of an offer to sell any of securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to or for the account or benefit of U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.

Further information on Lucky can be found on the Company's website at www.luckyminerals.com and at www.sedar.com, or by contacting Francois Perron, President and CEO, by email at investors@luckyminerals.com or by telephone at (866) 924 6484.

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.

Cautionary Statement Regarding Adjacent Properties and Forward-Looking Information

This news release contains forward-looking statements relating to the future operations of the Company and other statements that are not historical facts. Forward-looking statements are often identified by terms such as "will", "may", "should", "anticipate", "expects" and similar expressions. All statements other than statements of historical fact, included in this release, including, without limitation, statements regarding the future plans and objectives of the Company are forward-looking statements that involve risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Such factors include, but are not limited to: uncertainties related exploration and development; the ability to raise sufficient capital to fund exploration and development; changes in economic conditions or financial markets; increases in input costs; litigation, legislative, environmental and other judicial, regulatory, political and competitive developments; technological or operational difficulties or inability to obtain permits encountered in connection with exploration activities; and labor relations matters. This list is not exhaustive of the factors that may affect the Company's forward-looking information. Important factors that could cause actual results to differ materially from the Company's expectations also include risks detailed from time to time in the filings made by the Company with securities regulations.

The reader is cautioned that assumptions used in the preparation of any forward-looking information may prove to be incorrect. Events or circumstances may cause actual results to differ materially from those predicted, as a result of numerous known and unknown risks, uncertainties, and other factors, many of which are beyond the control of the Company. The reader is cautioned not to place undue reliance on any forward-looking information. Such information, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated. Forward-looking statements contained in this news release are expressly qualified by this cautionary statement. The forward-looking statements contained in this news release are made as of the date of this news release and the Company will update or revise publicly any of the included forward-looking statements as expressly required by Canadian securities law.

SOURCE: Lucky Minerals Inc.

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https://www.accesswire.com/630930/Lucky-Minerals-Announces-Closing-of-Second-and-Final-Tranche-of-Non-Brokered-Private-Placement-Units

FAQ

What is the amount raised in the second tranche of the private placement by Lucky Minerals (LKMNF)?

Lucky Minerals raised $464,800 in the second tranche of its private placement.

What are the total proceeds from the private placement by Lucky Minerals (LKMNF)?

The total proceeds from the private placement amount to $2,448,448.

What will the proceeds from the private placement be used for by Lucky Minerals (LKMNF)?

The proceeds will be used for exploration on the Fortuna Project and general working capital.

What is the Fortuna Project associated with Lucky Minerals (LKMNF)?

The Fortuna Project is a 550km² exploration concession located in a gold belt in southern Ecuador.

What is the nature of the agreement between Lucky Minerals (LKMNF) and First Quantum Minerals Ltd.?

Lucky Minerals has a memorandum of understanding with First Quantum Minerals that allows First Quantum to earn up to 70% on primary copper targets within the Fortuna Project.