Lucky Minerals Announces New Strategic Investor, Michael Gentile, a $1.8 M Non-Brokered Private Placement and Shares for Services Agreement

Rhea-AI Summary

Lucky Minerals (TSXV:LKY) (OTC PINK:LKMNF) announces a non-brokered private placement of up to 33,000,000 units for gross proceeds of approximately CDN $1.848 million. This includes investments from prominent strategist Michael Gentile, potentially increasing his stake to 19.9%. The offering will finance the maiden drill program at the Fortuna Project in Ecuador, with each unit priced at CDN $0.056. Gentile emphasizes the high potential for discovery, while the company prepares for its first drill phase.

Positive

• Successful non-brokered private placement aiming for CDN $1.848 million.
• Strategic investment from Michael Gentile, increasing potential ownership to 19.9%.
• Funding will support the first drill program at the Fortuna Project.

Negative

• None.

Not for distribution to United States news wire services or for dissemination in the United States

VANCOUVER, BC / ACCESSWIRE / May 27, 2022 / Lucky Minerals Inc. (TSXV:LKY) (OTC PINK:LKMNF), (FRA:LKY) ("Lucky" or the "Company") is pleased to announce a non-brokered private placement (the "Offering") of up to 33,000,000 units ("the Units") for gross proceeds of up to approximately CDN $1.848 million. Investors in the Offering include Michael Gentile, CFA who as a result of the Offering, intends to increase his share ownership in the Company potentially up to approximately 19.9% on a partially diluted basis.

The Offering consists of approximately 33,000,000 Units of the Company at CDN $0.056 per Unit, for gross proceeds of approximately CDN $1.848 million. Each Unit is comprised of one common share (a "Share") and one full three-year common share purchase warrant (a "Warrant"). Each Warrant entitles the holder thereof to acquire on additional Share at a price of CDN $0.10 per Share, until the date that is 36 months from the closing (the "Closing") of the Offering. All the Shares and Warrants issued in connection to the Offering are subject to a statutory hold period expiring four months and one day from the date of issuance.

The Company may pay finders' fees on a portion of the Offering in accordance with applicable securities laws and the policies of the TSX Venture Exchange.

The net proceeds of the Private Placement will be used to support the first drill program on the Company's Fortuna Project in Ecuador and for general working capital purposes. The Offering is subject to TSX Venture Exchange approval.

New strategic investor Mr. Michael Gentile

Mr. Gentile is considered one of the leading strategic investors in the junior mining sector, owning significant positions in over 15 small-cap mining companies. Mr. Gentile is currently a strategic advisor to Arizona Metals (AMC-V) and Geomega Resources as well as being a director of Northern Superior Resources (SUP-V), Roscan Gold (ROS-V), Radisson Mining Resources (RDS-V) and Solstice Gold (SGC-V). Mr. Gentile recently co-founded Bastion Asset Management, an investment management firm based out of Montreal, Quebec and was previously a Senior Portfolio Manager with Formula Growth Limited.

Mr. Gentile states, "Lucky Minerals is on the cusp of the most exciting and value creating face for a junior exploration company, the discovery phase. With the maiden drill program about to begin on their Wayka property, the potential for a major new discovery is high as the Company begins drilling directly under some of the wide and high grade trenches uncovered in 2021 and 2022. As set out in previous news releases, drilling under trench T-14 which uncovered 8 g/t gold over 9 m and trench T-21 which uncovered 5.24 g/t gold over 14 m, greatly increases the odds of success and positions Lucky Minerals well for the 2022 drill program. This new mineralized system is showing a large footprint that continues to expand with additional surface work and trenching. With a large and growing footprint, drilling about to begin and a small market cap of less than 10 million Canadian, the risk reward proposition in Lucky Minerals is quite compelling."

Francois Perron, Lucky's President and CEO states, "We are very excited to have Mr. Gentile join potentially as a significant shareholder of Lucky Minerals. Our project in Ecuador is entering a very exciting phase. Getting the support from a strategic long-term investor at this juncture helps lay the foundation upon which we will continue to build the Company. The entire team is looking forward to first drilling the discovery zone at Wayka in the coming weeks."

Shares for services agreement with a consulting geologist Mr. Franklin Viera

The Company also announces that subject to regulatory approval, and pursuant to TSX Venture Exchange Policy 4.3, the Company has entered into a shares for services agreement ("Agreement") with Mr. Franklin Viera. Mr. Viera will provide services to the Company as a technical consultant for the drilling phase of the Company's Ecuador property. Services provided will include 3D modeling, GIS, drill hole planning, geochemical analysis, core logging, field geological mapping property evaluation, database management and occasional field program supervision and other duties that may be required by the Company. While the Agreement is in effect, Mr. Viera will receive a portion of his compensation in common shares ("Compensation Shares") of the Company equivalent in value of up to USD $5,000 per month.

Mr. Viera is a well known geologist in Ecuador and has been involved in many significant projects including the discovery of Quimsacocha which is now called the Loma Larga project.

ON BEHALF OF THE BOARD

"François Perron"
Chief Executive Officer

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.

The Company's Fortuna Project is comprised of twelve contiguous, 550 km² (55,000 Hectares, or 136,000 Acres) exploration concessions. Fortuna is located in a highly prospective, yet underexplored, gold belt in southern Ecuador.

Qualified Person

Victor Jaramillo, M.Sc.A., P.Geo., Lucky's Exploration Manager and a qualified person in accordance with National Instrument 43-101, is responsible for supervising the exploration program at the Fortuna Project for Lucky Minerals and has reviewed and approved the technical information contained in this news release.

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

Or by contacting:

Renmark Financial Communications Inc.
Kerry Schacter: kschacter@renmarkfinancial.com
Tel: (416) 644-2020 or (514) 939-3989
www.renmarkfinancial.com

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 to 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 regulators.

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 not update or revise publicly any of the included forward-looking statements unless required by Canadian securities law.

SOURCE: Lucky Minerals Inc.

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FAQ

What is the private placement amount announced by Lucky Minerals on May 27, 2022?

Lucky Minerals announced a private placement for gross proceeds of approximately CDN $1.848 million.

Who is the strategic investor involved in Lucky Minerals' latest announcement?

The strategic investor is Michael Gentile, who may increase his ownership stake to approximately 19.9%.

What will the proceeds from the private placement be used for?

The proceeds will be used to support the first drill program at the Fortuna Project in Ecuador and for general working capital purposes.

What is the price per unit in Lucky Minerals' private placement?

Each unit in the private placement is priced at CDN $0.056.

When will the drilling program at the Fortuna Project begin?

The drilling program at the Fortuna Project is expected to begin in the coming weeks.