Lake Victoria Gold completes $2 million private placement

VANCOUVER - Lake Victoria Gold Ltd. (TSXV:LVG) announced Monday it has closed a non-brokered concurrent private placement, raising $2 million through the issuance of 11,428,571 common shares priced at $0.175 per share. The offering price represents a premium to the current market price of $0.13, with the company’s shares showing strong momentum this year, up nearly 25% year-to-date according to InvestingPro data.

The financing follows the company’s previously announced LIFE Private Placement that closed on September 17. Securities issued in the concurrent placement are subject to a four-month statutory hold period in accordance with Canadian securities laws.

The company paid $7,007 in cash and issued 40,040 finder’s warrants to Canaccord Genuity Corp. for a portion of the placement. Each warrant is exercisable at $0.175 per share for three years following completion of the placement.

Company insiders participated in the financing, purchasing 3,823,800 shares for $669,165. This insider participation is exempt from formal valuation and minority shareholder approval requirements under applicable regulations.

Lake Victoria Gold stated it intends to use the proceeds for general working capital purposes.

The Tanzania-focused gold exploration company holds a 100% interest in the Tembo project located adjacent to Barrick’s Bulyanhulu Mine, and the fully permitted Imwelo Project situated west of AngloGold Ashanti’s Geita Gold Mine. While the company is not currently profitable, InvestingPro identifies several additional key metrics and insights available to subscribers, including detailed financial health scores and growth potential indicators.

The company noted that management, directors and partners own more than 60% of its shares. Lake Victoria Gold has also established a strategic partnership with Taifa Group, which will perform contract mining and civil works for the Imwelo project through its subsidiary Taifa Mining.

This article is based on a press release statement issued by Lake Victoria Gold.

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