Luna Gold Corp. (TSX:LGC,OTCQX:LGCUF) announced a non-brokered private placement of up to 30,000,000 common shares at a price of $1.02 per share, for gross proceeds of up to $30,600,000. Luna will enter a strategic investment agreement with Sandstorm Gold Ltd. (TSX:SSL) as part of the financing, making Sandstorm the company’s largest shareholder upon completion.
As quoted in the press release:
In addition, Sandstorm and Luna have commenced discussions related to the potential modification of the Aurizona gold stream. The focus of the discussions is to explore opportunities that will increase value for both Sandstorm and bLuna shareholders with the goal of improving Luna’s access to capital, accelerating production and cash flow to both Sandstorm and Luna and leveraging the highly prospective brownfields and greenfields exploration targets. Sandstorm currently holds a gold stream agreement to purchase 17% of the life of mine gold produced from the open-pit operations at Aurizona at a per ounce price of US$404 (increasing 1% annually). Investors are cautioned that there can be no assurances that the negotiations will lead to a restructuring of the existing streaming agreement.
Sandstorm president and CEO, Nolan Watson, said:
Sandstorm is committed to making the Aurizona mine a success for all stakeholders, and we believe our investment is a demonstration of such intent and a sign of our confidence in the future of Luna. I would like to thank Lucho Baertl for facilitating this transaction at the Board level.
Nexus Gold Corp. (TSXV:NXS) is currently drilling on the Walker Ridge Gold Project in Nevada - a multiple target, Carlin-type gold exploration property. They have recently submitted an expanded Plan to increase the current 8 pad plan to 29 drill pads.
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