Lucky Secures Over $2.5 Million of Commitments Towards a $3.5 Million Non-Brokered Private Placement

Rhea-AI Summary

Lucky Minerals Inc has announced a non-brokered private placement of 43,750,000 units at a price of CDN$0.08 per unit, aiming for gross proceeds of CDN $3.5 million. Each unit includes one common share and one warrant, exercisable at CDN $0.15 for 24 months. Commitments of over CDN $2.5 million have already been secured, with a first tranche closing by September 3, 2021. Funds will support a 3,000-meter drill program at the Fortuna Project in Ecuador, following promising surface exploration results.

Positive

• Secured over CDN $2.5 million in commitments towards CDN $3.5 million offering.
• First tranche of financing expected to close by September 3, 2021.
• Funds will support a 3,000-meter drill program targeting gold at the Fortuna Project.

Negative

• None.

VANCOUVER, BC / ACCESSWIRE / August 26, 2021 / Lucky Minerals Inc. (TSXV:LKY)(OTC PINK:LKMNF)(FRA:LKY) ('Lucky' or the 'Company') is pleased to announce a non-brokered private placement (the 'Private Placement' or 'Offering') consisting of 43,750,000 units of the Company (the 'Units') at a price of CDN$0.08 per Unit for gross proceeds of CDN $3.5 Million. Each Unit consists of one common share ('Common Share') of the Company and one common share purchase warrant ('Warrant'). Each Warrant will be exercisable to acquire one Common Share of the Company at a price of CDN $0.15 per Common Share for a period of 24 months from the date of issuance. All of the Common 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 has already obtained commitments exceeding CDN $2.5 million and expects to close a first tranche by September 3, 2021. The second and final tranche is expected to close in the following weeks. The Company wishes to thank its US corporate advisor, EAS Advisors, LLC, acting through Odeon Capital Group LLC, member of FINRA/SIPC/MSRB/NFA, for its assistance with the Private Placement.

The Company may pay finder's fees on a portion of the Private Placement in accordance with applicable securities laws and the policies of the TSX Venture Exchange.

This Offering is subject to TSX Venture Exchange Approval.

The net proceeds of the Offering will be used to complete the very first drill program on the Company's Fortuna Project in Ecuador and for general working capital.

The drill program is expected to be approximately 3,000 meters and is a follow up to the recent discoveries made during the surface exploration work over the past 18 months. These include Wayka's trench T6 which sampled 17.63 g/t gold over 3.0 meters (Please click here to read July 30, 2021 News Release).

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.

Covid-19 Safety Protocols
Lucky Minerals has strict rules in place for all workers arriving to and from field sites. All personnel are tested upon arriving and leaving and are tested every two weeks. All personnel are housed in separate and private accommodations and are isolated from the community.

ON BEHALF OF THE BOARD

'Francois Perron'
Chief Executive Officer

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 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 undertakes no obligation to update or revise publicly any of the included forward-looking statements except as expressly required by Canadian securities law.

SOURCE: Lucky Minerals Inc.

View source version on accesswire.com:
https://www.accesswire.com/661449/Lucky-Secures-Over-25-Million-of-Commitments-Towards-a-35-Million-Non-Brokered-Private-Placement

FAQ

What is the purpose of Lucky Minerals' private placement?

The private placement aims to raise CDN $3.5 million to fund a drill program on the Fortuna Project and for general working capital.

How much has Lucky Minerals raised from the private placement?

Lucky Minerals has secured over CDN $2.5 million in commitments towards the CDN $3.5 million private placement.

When will the first tranche of the private placement close?

The first tranche of the private placement is expected to close by September 3, 2021.

What is included in each unit of the private placement?

Each unit consists of one common share and one warrant, which is exercisable to acquire one common share at CDN $0.15 for 24 months.

What is the Fortuna Project's significance to Lucky Minerals?

The Fortuna Project is a key exploration target for Lucky Minerals, consisting of 550 km² of concessions in a prospective gold belt in Ecuador.