Lumina Gold Corp. (TSXV: LUM) (OTC: LMGDF) is pleased to announce that it has completed its previously announced short form prospectus offering and concurrent private placement consisting of a total of 35.72 million Lumina common shares, at a price of C$0.56 per Share, for gross proceeds of C$20.0 million. The Offering was made through a syndicate of agents, led by Haywood Securities Inc., and including Raymond James Ltd., BMO Capital Markets, RBC Capital Markets and PI Financial Corp.
The Company plans to use the net proceeds from the Offering and the Private Placement to fund infill, step-out, geotechnical, hydrology and metallurgical drilling; environmental, permitting and social programs; updating the resource estimate for the Company’s Cangrejos Gold-Copper project; and for working capital and general and administrative expenses.
The Offering was completed by way of a short form prospectus filed in the provinces of British Columbia, Alberta, Manitoba and Ontario pursuant to National Instrument 44-101 Short Form Prospectus Distributions, and elsewhere on a private placement basis. The Shares purchased pursuant to the Private Placement are subject to a statutory four month and a day hold period that will expire on March 28, 2019. In connection with the Private Placement, finder’s fees of 4% were paid on the proceeds from certain subscribers to Trimark Capital.
As part of the Private Placement, Ross J. Beaty, a significant shareholder, purchased 10,086,000 Shares. Following completion of the Offering and the Private Placement, Mr. Beaty now beneficially owns, directly or indirectly, or exercises control or direction over, an aggregate of 53,120,169 Shares, which represents approximately 17.16% of Lumina’s issued and outstanding common shares.
The securities offered pursuant to the Offering 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 applicable U.S. state securities laws, and may not be offered or sold in the United States absent registration or any applicable exemption from the registration requirements of the U.S. Securities Act and applicable U.S. state securities laws. This news release shall not constitute an offer to sell or the solicitation of an offer to buy securities in the United States, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.
About Lumina Gold
Lumina Gold Corp. is a Vancouver, Canada based precious and base metals exploration and development company focused on the Cangrejos Gold-Copper project located in El Oro Province, southwest Ecuador. Lumina has an experienced management team with a successful track record of advancing and monetizing exploration projects.
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