LODE Gold Closes 2nd Tranche of Private Placement for Total Oversubscribed Financing of $2.08 Million

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Lode Gold Resources Inc. (formerly Stratabound Minerals) closed on March 18, 2024, $656,721.70 (26,268,868 units) of its non-brokered private placement announced on Jan. 3, 2024. Each unit consists of one common share and one common share purchase warrant issued at a price of 2.5 cents per unit. Each common share purchase warrant will entitle the holder thereof to purchase an additional common share of the company at five cents per share for a period of 24 months from the closing date. The company may accelerate the expiry date if the shares trade at 30 cents or more for a period of 10 days, including days where no trading occurs. This closing is subject to receipt of final approval from the TSX Venture Exchange.

The company closed the first tranche of $1,422,902.50 (56,916,100 units) on March 5, 2024. Total amount raised was $2,079,624.20 (83,184,968 units). Finders’ fees of $9,800 and 392,000 broker warrants on the same terms were issued to qualified finders. Securities issued pursuant to this final tranche are subject to trading restrictions until July 18, 2024.

Insiders of the company subscribed for an aggregate of 44,516,100 common shares of the company. The company has relied on the exemptions from the valuation and minority shareholder approval requirements of MI 61-101 contained in sections 5.5(b) and 5.7(a) of MI 61-101 in respect of such insider participation.

The proceeds raised from the offering will go toward high-resolution magnetics and drill targeting the company’s McIntyre Brook property (New Brunswick), data review and targeting to leverage a new RIRGS exploration model at the Golden Culvert and Win projects (Southern Tombstone gold belt, Yukon), and drill target generation testing a large, high-grade conceptual model at its Fremont gold project (Mother Lode gold belt, California).

Wendy T. Chan, chief executive officer of Lode Gold, commented: “Late last year, we devised a turnaround plan for the company. The strategy was well received by key shareholders with unanimous endorsement from the board. We are on track in executing our plans.”

Hashim Ahmed, chairman of Lode Gold, noted: “We intended to raise $1.5-million to execute our plan, overachieving with a $2-million financing. This is a testament to our team’s leadership and ability to execute. The pure play exploration Spin Co. will unlock the value of our assets, a new RIRGS target in Yukon, and our property located in an emerging and highly prospective gold belt in New Brunswick.”

About Lode Gold Resources Inc.

Lode Gold is a Canadian exploration and development company with grassroots and advanced exploration properties in highly prospective and safe mining jurisdictions.

Its Golden Culvert and Win projects, Yukon, covering 99.5 square kilometres across a 27-kilometre strike length, are situated in a district-scale, high-grade-gold-mineralized trend within the southern portion of the Tombstone gold belt. Gold deposits and occurrences within the belt include Fort Knox, Pogo, Brewery Creek and Dublin Gulch, and Snowline Gold’s Valley target on its Rogue property in the Selwyn basin.

Its McIntyre Brook project, New Brunswick, covering 120 square kilometres and a 17-kilometre strike length in the emerging Triple Fault gold belt, is surrounded by Puma Exploration’s Williams Brook project (5.55 grams per tonne gold over 50 metres) and is hosted by orogenic rocks of similar age and structure as New Found Gold’s Queensway project.

The company is also advancing its Fremont gold development project in the historic Mother Lode gold belt of California, where 50 million ounces of gold have been produced. Fremont, located approximately 500 km north of Equinox Gold’s Castle Mountain and Mesquite mines, has a preliminary economic assessment with an after-tax net present value (5 per cent) of $217-million (U.S.), a 21-per-cent internal rate of return and an 11-year life of mine, averaging 118,000 ounces per annum at $1,750 (U.S.) of gold. A sensitivity to the March 31, 2023, PEA at $2,000 (U.S.) per ounce gold gives an after-tax NPV (5 per cent) of $370-million (U.S.) and a 31-per-cent IRR over an 11-year LOM.

The project hosts a National Instrument 43-101 resource of 1.16 million ounces at 1.90 grams per tonne gold within 19.0 million tonnes indicated, and 2.02 Moz at 2.22 g/t Au within 28.3 Mt inferred. The mineral resource estimate evaluates only 1.4 kilometres of the four-kilometre strike length of the Fremont property that features four gold-mineralized zones. Significantly, three stepout holes at depth hit structure, typical of orogenic deposits, that often occur at depth. Fremont is located on private land in Mariposa, the original gold rush county, and is 1.5 hours from Fresno, Calif. The property has year-round road access and is close to airports and rail. Please refer to the Fremont gold project PEA dated March 31, 2023, under NI 43-101 guidelines. The technical report has been reviewed and approved by independent qualified persons Eugene Puritch, PEng, FEC, CET, and Andrew Bradfield, PEng, both of P&E, and Travis Manning, PE, of KCA.

The company also holds a pipeline of early-stage exploration projects including the critical mineral Captain cobalt-copper-gold deposit in New Brunswick and the Dingman gold project, Ontario.

Qualified person statement:

The scientific and technical information contained in this press release has been reviewed and approved by Jonathan Victor Hill, director, BSc (honours) (economic geology — UCT), FAusIMM, who is a qualified person as defined by National Instrument 43-101 (Standards of Disclosure for Mineral Projects).