Lode Gold (Formerly Stratabound) Closes First Tranche of Financing for $1.43 Million

Rhea-AI Summary

Lode Gold Minerals Corp. (SBMIF) successfully closes the first tranche of its non-brokered financing, receiving full participation from board members and management, generating $1,432,652.50 in proceeds. The financing comprises 57,306,100 units at $0.025 per unit, each including a common share and a warrant. The company may accelerate warrant expiry if shares trade at $0.30 for 10 days. The financing is subject to TSXV final approval, with a statutory hold period of four months. Key executives express confidence in the new management team and the company's 2024 plans.

Toronto, Ontario--(Newsfile Corp. - March 1, 2024) - Lode Gold Minerals Corp. (TSXV: LOD) (OTCQB: SBMIF) ("Lode Gold " or the "Company" and formerly Stratabound Minerals) is pleased to announce that it has accepted subscriptions for the first tranche of its previously announced non-brokered financing designated to close on March 5, 2024.

The Company is pleased to have received 100% 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 $0.025 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 $0.05 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 $0.30 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 day. The closing of the financing is subject to TSXV final approval.

Ron Tomlinson, CEO of Tomlinson Group states, "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 adds, "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 advisors have brought into Lode Gold. We are on track and actively executing our restructuring, growth strategy and plans."

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 of USD $217MM, a 21% IRR, 11-year LOM, averaging 118k ounces per annum at USD $1,750 gold. 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. A sensitivity to the March 31, 2023 PEA at USD $2,000/oz gold gives an after-tax NPV of USD $370MM and a 31% IRR over an 11-year LOM. 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, Director 
info@stratabound.com
+1 (416) 915-4157

Kevin Shum
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/200091

FAQ

What is the ticker symbol for Lode Gold Minerals Corp.?

The ticker symbol for Lode Gold Minerals Corp. is SBMIF.

How much proceeds did Lode Gold Minerals Corp. generate from the financing?

Lode Gold Minerals Corp. generated $1,432,652.50 in proceeds from the financing.

What is the exercise price of the common share purchase warrant?

The exercise price of the common share purchase warrant is $0.05 per common share for a period of two years following the date of closing.

Who expressed renewed confidence in the new management team and Lode Gold's vision?

Ron Tomlinson, CEO of Tomlinson Group, expressed renewed confidence in the new management team and Lode Gold's vision.

What is the hold period for the securities issued in the proposed closing?

The securities issued in the proposed closing will be subject to a statutory hold period of four months.