The Prospector News

Lupaka Gold Completes Non-Brokered Private Placement for Proceeds of $1.61 Million

You have opened a direct link to the current edition PDF

Open PDF Close

Share this news article

Lupaka Gold Completes Non-Brokered Private Placement for Proceeds of $1.61 Million






Lupaka Gold Corp (TSX: LPK) (LMA: LPK) (FRANKFURT: LQP) has raised gross proceeds of $1,610,000, pursuant to the closing of a non-brokered private placement of 8,050,000 units priced at $0.20 per Unit.



Mr. Eric Edwards, President and CEO of Lupaka Gold commented on the successful Placement stating, “Being able to close a significant financing in this market shows the strength of the Company’s business plan, belief in our team, and investor confidence in the Invicta Gold Project. We welcome a number of new investors to Lupaka Gold, and are pleased that some of our current shareholders have also seen this Placement as an opportunity to increase their holdings in Lupaka Gold.”



Mr. Edwards further commented on the Company’s exploration vision, “While our efforts through early next year will be primarily focused on getting our Invicta Gold Project into production and generating cash flow, we remain committed to delivering the full exploration upside of our Crucero, Josnitoro, and Invicta gold projects.”



The Company issued 8,050,000 Units at $0.20 per Unit. Each Unit consists of one common share and one transferable common share purchase warrant. Each Warrant entitles the holder to purchase one additional common share, exercisable at $0.30 for a period of thirty six months from closing. Insiders of the Company have purchased 1,050,000 Units. The shares and Warrants issued in the Placement are subject to a four-month hold period.



The Warrants are subject to an acceleration clause in the event the closing price of Lupaka Gold’s common shares is greater than $0.40 for a period of 20 consecutive trading days, Lupaka Gold may accelerate the expiry date of the warrants by giving notice to the holders thereof through the issuance of a press release. In such case the Warrants will expire on the 30th day after the date on which such notice is given.



Gordon Ellis, Eric Edwards, Darryl Jones, Stephen Silbernagel and Norman Keevil, Directors and Officers of the Company, acquired Units under the Placement. Their participation is considered to be a “related party transaction” as defined under Multilateral Instrument 61-101 Protection of Minority Security Holders in Special Transactions. The transaction is exempt from the formal valuation and minority shareholder approval requirements of MI 61-101 as neither the fair market value of the Units issued to them, or the consideration paid, exceeded 25% of the Company’s market capitalization. The Company did not file a material change report more than 21 days before the expected closing of the Placement as the details of the participation therein by related parties of the Company were not settled until shortly prior to closing and the Company wished to close on an expedited basis for sound business reasons.



Finders’ fees payable in connection with the Placement consisted of a total of $64,500 cash and 322,500 finders’ warrants.



Proceeds from the Placement will be applied toward initial capital and mine development expenditures to commence production at the Invicta Gold Project.



Lupaka Gold’s Interest in Southern Legacy



The Company recently sold its ~17% equity ownership interest in Southern Legacy Minerals Inc. (TSX-V:LCY), for net cash proceeds of approximately $1.0 million.



About Lupaka Gold



Lupaka Gold is a Peru-focused gold explorer and developer with geographic diversification and balance through its interest in asset-based resource projects spread across three regions of Peru.


Posted August 7, 2014

Share this news article


Grizzly Drills 7.37 G/T Gold over 3.08 Metres at its Ket 28 Gold Target

Grizzly Discoveries Inc. (TSX-V: GZD) (OTCQB: GZDIF) (Frankfurt: ... READ MORE

December 2, 2020

Regulus Closes Transaction with Osisko Gold Royalties

Regulus Resources Inc. (TSX-V: REG) (OTCQX: RGLSF)is please... READ MORE

December 2, 2020

Liberty Gold Announces Infill Drill Results In The D-1 and D-3 Zones at Black Pine, Idaho: 1.41 g/t Au over 22.9 m and 1.51 g/t Au over 56.4 m including 2.36 g/t over 24.4 m in LBP206

Liberty Gold Corp. (TSX:LGD) is pleased to announce additional re... READ MORE

December 2, 2020

Northern Vertex Repays Debt and Strengthens Capital Structure

Northern Vertex Mining Corp. (TSX-V: NEE) (OTC Nasdaq Intl.: NHVC... READ MORE

December 2, 2020

Superior Gold Announces Positive Preliminary Economic Assessment for the Plutonic Main Pit Push-Back Project

Superior Gold Inc. (TSX-V: SGI) is pleased to announce positive r... READ MORE

December 2, 2020

Copyright 2020 The Prospector News - Site design by Spyderbaby Productions