Lode Gold Closes Second Tranche of Private Placement for Total Oversubscribed Financing of $2.08 Million

Rhea-AI Summary

Lode Gold Resources Inc. (SBMIF) successfully closed a non-brokered private placement, raising $2,079,624.20 through the issuance of 83,184,968 units. The offering included common shares and warrants, with insiders subscribing for 44,516,100 common shares. The funds will be used for exploration activities in New Brunswick, Yukon, and California. The company's strategic turnaround plan has been well received, leading to a successful financing exceeding the initial target.

Toronto, Ontario--(Newsfile Corp. - March 18, 2024) - Lode Gold Resources Inc. (TSXV: LOD) (OTCQB: SBMIF) ("Lode Gold" or the "Company" and formerly Stratabound Minerals) announces the closing on March 18, 2024 of $656,721.70 (26,268,868 units) of its non-brokered private placement ("Private Placement") announced on January 3, 2024. Each unit consists of one common share and one common share purchase warrant issued at a price of CDN $0.025 per unit. Each common share purchase warrant will entitle the holder thereof to purchase an additional one common share of the Company at $0.05 (Canadian) per share for a period of 24 months from the closing date. The Company may accelerate the expiry date if the shares trade at $0.30 or more for a period of 10 days, including days where no trading occurs. This closing is subject to receipt of final approval from the TSX Venture Exchange.

The Company closed the first tranche of $1,422,902.50 (56,916,100 units) on March 5, 2024. Total amount raised was $2,079,624.20 (83,184,968 units). Finders' fees of $9,800 and 392,000 broker warrants on the same terms were issued to qualified finders. Securities issued pursuant to this final tranche are subject to trading restrictions until July 18, 2024.

Insiders of the Company subscribed for an aggregate of 44,516,100 common shares of the Company. The Company has relied on the exemptions from the valuation and minority shareholder approval requirements of MI 61-101 contained in sections 5.5(b) and 5.7(a) of MI 61-101 in respect of such insider participation.

The proceeds raised from the offering will go towards high resolution magnetics and drill targeting the Company's McIntyre Brook property (New Brunswick), data review and targeting to leverage a new RIRGS exploration model at Golden Culvert and Win projects (Southern Tombstone Gold Belt, Yukon), and drill target generation testing a large, high-grade conceptual model at its Fremont Gold project (Mother Lode Gold Belt, California).

Wendy T. Chan, CEO of Lode Gold comments, "Late last year, we devised a turnaround plan for the Company. The strategy was well received by key shareholders with unanimous endorsement from the Board. We are on track in executing our plans."

Hashim Ahmed, Chairman of Lode Gold notes, "We intended to raise $1.5 million to execute our plan, overachieving with a $2-million financing. This is a testament to our team's leadership and ability to execute. The pure-play exploration Spin Co will unlock the value of our assets, a new RIRGS target in Yukon, and our property located in an emerging and highly prospective gold belt in New Brunswick."

ABOUT LODE GOLD

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, Yukon, covering 99.5 km² across a 27-km 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 and Dublin Gulch, and Snowline Gold's Valley target on its Rogue property in the Selwyn Basin.

Its McIntyre Brook Project, New Brunswick, covering 120 km² and a 17-km strike length in the emerging Triple Fault Gold Belt, is surrounded by Puma Exploration's Williams Brook Project (5.55 g/t Au over 50m) 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 50,000,000 oz of gold has been produced. Fremont, located ~500km north of Equinox Gold's Castle Mountain and Mesquite mines, has a PEA with an after-tax NPV(5%) of USD $217MM, a 21% IRR, 11-year LOM, averaging 118k ounces per annum at USD $1,750 gold. A sensitivity to the March 31, 2023 PEA at USD $2,000/oz gold gives an after-tax NPV(5%) of USD $370MM and a 31% IRR over an 11-year LOM. The project hosts an NI 43-101 resource of 1.16 Moz at 1.90 g/t Au within 19.0 MT Indicated, and 2.02 Moz at 2.22 g/t Au within 28.3 MT Inferred. The MRE evaluates only 1.4 km of the 4 km strike length of the Fremont property that features 4 gold-mineralized zones. Significantly, three step-out 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, California. 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, P.Eng., FEC, CET, and Andrew Bradfield, P.Eng. both of P&E, and Travis Manning, P.E. 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, 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 (Hons) (Economic Geology - UCT), FAusIMM, and who is a "qualified person" as defined by National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101").

For more information, please visit the Company's website at www.stratabound.com or contact:

Gary Nassif 
Senior Vice President, 
info@stratabound.com 
+1 (416) 915-4157 

Kevin Shum
Director Investor Relations
kevin@jeminicapital.com
+1 (647) 725-3888 ext. 702

Forward-Looking Statements

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.

WARNING: The Company relies upon litigation protection for "forward-looking" statements. The information in this release may contain forward-looking information under applicable securities laws. This forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from those implied by the forward-looking information. Factors that may cause actual results to vary materially include, but are not limited to, inaccurate assumptions concerning the exploration for and development of mineral deposits, currency fluctuations, unanticipated operational or technical difficulties, changes in laws or regulations, failure to obtain regulatory, exchange or shareholder approval, the risks of obtaining necessary licenses and permits, changes in general economic conditions or conditions in the financial markets and the inability to raise additional financing. Readers are cautioned not to place undue reliance on this forward-looking information. The Company does not assume the obligation to revise or update this forward-looking information after the date of this release or to revise such information to reflect the occurrence of future unanticipated events, except as may be required under applicable securities laws.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/202228

FAQ

How much was raised in the non-brokered private placement by Lode Gold Resources Inc. (SBMIF)?

Lode Gold Resources Inc. (SBMIF) raised $2,079,624.20 through the issuance of 83,184,968 units in the non-brokered private placement.

What will the funds raised be used for by Lode Gold Resources Inc. (SBMIF)?

The funds raised will be used for high resolution magnetics and drill targeting at the McIntyre Brook property in New Brunswick, exploration activities in Yukon, and drill target generation testing at the Fremont Gold project in California by Lode Gold Resources Inc. (SBMIF).

Who subscribed for 44,516,100 common shares in the private placement by Lode Gold Resources Inc. (SBMIF)?

Insiders of Lode Gold Resources Inc. (SBMIF) subscribed for 44,516,100 common shares in the private placement.

What did Wendy T. Chan, CEO of Lode Gold Resources Inc. (SBMIF), comment on regarding the company's strategy?

Wendy T. Chan, CEO of Lode Gold Resources Inc. (SBMIF), commented that the company's turnaround plan devised last year has been well received by key shareholders and the Board, and they are on track in executing their plans.

What did Hashim Ahmed, Chairman of Lode Gold Resources Inc. (SBMIF), mention about the financing achievement?

Hashim Ahmed, Chairman of Lode Gold Resources Inc. (SBMIF), mentioned that the company aimed to raise $1.5 million but overachieved with a $2-million financing, showcasing the team's leadership and execution abilities.