Lumina Gold Corp. Arranges $26 Million Pair of Private Placements

September 13, 2021 04:52 PM PST

Image: Odin Camp Core shack, courtesy Lumina Gold Corp. ©2021

Ecuador-focused gold miners Lumina Gold Corp. (TSX-V: LUM) announced a $26 million total pair of private placements on Monday.

In the first deal, the company has entered into an agreement with a group of agents led by Haywood Securities and Raymond James to sell up to 26.67 million common shares at 60 cents each. They've also been offered an over-allotment option to purchase up to an additional $2.4 million in shares.

The second offering is a non-brokered financing to sell 10 million shares at the same price to "certain insiders and strategic investors."

Lumina plans to use the proceeds for drilling and pre-feasibility work at its Cangrejos project in Ecuador. Investors haven't heard much on the project for quite some time, but a June 2020 resource estimate pegged the project with an indicated resource of 571 million tonnes of 0.73 g/t AuEq and an inferred resource of 500 million tonnes at 0.52 g/t AuEq.

Shares of the company have dropped in the lead-up to the announcement, and after, down 3 cents on Monday to close at 63 cents.

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