Lake Victoria Gold Closes First Tranche of Convertible Debenture Financing
TSXV: LVG | OTCQB: LVGLF | FSE: E1K
Overview
Lake Victoria Gold Ltd. announced it has closed the first tranche of its non-brokered private placement of unsecured convertible debentures for gross proceeds of $3,534,200. The company intends to close a subsequent tranche to raise aggregate gross proceeds of up to $3,800,000 together with the first tranche.
The company also announced it proposes to issue 83,960 common shares at $0.31 per share to pay $26,027.51 in interest on debentures issued in July and August 2024.
Key Highlights
- First tranche raised $3,534,200 in gross proceeds from convertible debentures
- Debentures bear 5% annual interest payable semi-annually in cash
- 36-month maturity with conversion price of $0.30 per common share
- Investors received warrants for 5,890,324 common shares exercisable at $0.40 for 36 months
- Proceeds will advance engineering, mine planning, and development at Imwelo Gold Project
- 83,960 Interest Shares to be issued at $0.31 per share for prior debenture interest payments
Financing Details
According to the company, each debenture converts into common shares at $0.30 per share at the holder's option before the 36-month maturity date. The debentures constitute unsecured obligations ranking pari passu with other unsecured indebtedness and subordinate to secured debt obligations.
Warrant holders can purchase common shares equal to 50% of the shares issuable upon debenture conversion, exercisable at $0.40 per share for 36 months. All securities are subject to a four-month and one-day statutory hold period under Canadian securities laws.
Strategic Context
CEO Marc Cernovitch stated the financing provides additional flexibility as the company continues advancing Imwelo toward development. He noted continued support from existing long-term shareholders and strategic investors as the company executes on engineering, financing, and operational workstreams.
The company plans to use proceeds for ongoing engineering, mine planning, infrastructure preparation, and development activities at the Imwelo Gold Project, while supporting near-term initiatives at the Tembo Project and general corporate purposes.
What to Watch Next
- Closing of subsequent tranche to complete up to $3,800,000 total financing
- Final approval from TSX Venture Exchange for the private placement
- Final approval from TSX Venture Exchange for Interest Shares issuance
- Continued advancement of development activities at Imwelo Gold Project
About Lake Victoria Gold
Lake Victoria Gold is a gold exploration and development company listed on the TSX Venture Exchange under the symbol LVG. The company focuses on growth and consolidation in the Lake Victoria Goldfield in Tanzania. It has a 100% interest in the Tembo project, located adjacent to Barrick's Bulyanhulu Mine, and a 100% interest in the Imwelo Project, a fully permitted gold project west of AngloGold Ashanti's Geita Gold Mine.
Disclaimer and Forward-Looking Statements
The information contained herein is provided by ArcStone Financial Pulse Inc. ("ArcStone Financial Pulse"), a subsidiary of ArcStone Securities and Investments Corp. ("ArcStone"), for informational purposes only. It is not, and under no circumstances should it be construed as, an offer to sell or a solicitation of an offer to buy any securities or other financial instruments in any jurisdiction. This content is not a research report within the meaning of FINRA Rules 2241 or 2242 and does not constitute a research report under any applicable securities laws.
Certain statements contained herein may constitute "forward-looking statements" within the meaning of applicable Canadian and U.S. securities laws. Forward-looking statements are based on current expectations, estimates, and assumptions that involve known and unknown risks and uncertainties which may cause actual results or developments to differ materially from those expressed or implied. These statements often include words such as "anticipate," "believe," "expect," "intend," "may," "plan," "project," "should," "target," or similar expressions. Readers are cautioned not to place undue reliance on such statements, which speak only as of the date made. Except as required by law, ArcStone undertakes no obligation to update or revise any forward-looking information.
This content is not intended as investment advice or a recommendation to buy or sell any security and does not take into account the investment objectives, financial situation, or needs of any individual. Investors should consult their own professional advisors before making any investment decisions.
ArcStone Securities and Investments Corp. is not a registered broker-dealer and does not provide investment advice or recommendations. All registrable activities in the United States are conducted through ArcStone Securities, LLC (CRD# 306029) and/or Kingswood Capital Partners, LLC (CRD# 288898), both FINRA-registered broker-dealers, members SIPC. ArcStone Canada Inc. is not registered as a dealer in any Canadian jurisdiction; registrable dealing activities in Canada are conducted through appropriately registered affiliates.
ArcStone Kingswood is a DBA Office of Supervisory Jurisdiction (OSJ) of Kingswood Capital Partners, LLC (Member FINRA/SIPC) under which registered representatives of ArcStone Securities, LLC (Member FINRA/SIPC) and registered representatives of Kingswood Capital Partners, LLC conduct joint capital markets and investment banking activities. ArcStone Securities, LLC and Kingswood Capital Partners, LLC are parties to a written agreement governing the sharing of fees on transactions in which registered representatives of both firms participate. All securities transactions and investment banking services described in this article are conducted exclusively through ArcStone Securities, LLC and/or Kingswood Capital Partners, LLC; "ArcStone Kingswood" itself is not a registered broker-dealer or separate legal entity.
ArcStone Financial Pulse Inc. is owned by the same parent entity (ArcStone Securities and Investments Corp.) that owns ArcStone Securities, LLC. This common ownership, together with the joint operating relationship between ArcStone Securities, LLC and Kingswood Capital Partners, LLC under the ArcStone Kingswood DBA OSJ banner, represents a structural conflict of interest. Lake Victoria Gold Ltd. (the "Company") is a current client of ArcStone Canada Inc.. ArcStone Canada Inc. has received CAD $5,000+HST/month + 500,000 options at $0.20 + $7,000 travel budget. No success fees. in connection with advisory services to the Company. This consideration represents a conflict of interest, as ArcStone may be perceived to have an incentive to present the Company in a favorable light. The principals, directors, officers, employees, and related entities of ArcStone and its affiliates may, from time to time, own, buy, or sell securities or derivatives of the Company or its affiliates.
