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.