Each one in plain English, with the numbers worked through for a shareholder.
19 Oct 2021capital raising announcement● NeutralMajor
On October 14, 2021 the company signed a three-year option with Barrick subsidiaries HMCC and LAC Minerals (USA) to acquire the 2,126-acre Richmond Hill Property in the Homestake District. It paid US$100,000 cash and issued 400,000 shares to Barrick, with US$100,000 annual option payments. It can exercise by September 7, 2024 by assuming the liabilities and bonds, issuing 400,000 more shares and granting a 1.0% royalty on any gold recovered. The filing says its total package would be 34,657 mineral acres (38,918 acres total), and Barrick could own up to 5.55 million shares (7.48%) on exercise. This extends the September 2021 Barrick option deal and adds to share dilution.
On September 7, 2021 the company signed an option agreement with Homestake Mining Company of California (a Barrick Gold subsidiary) to acquire 4,261 acres of surface rights plus facilities and data in the Homestake District, South Dakota. It paid $1.3 million cash and issued 1 million shares to Barrick, with $300,000 annual option payments, and can exercise by September 7, 2024 by assuming HMCC's liabilities and bonds. On exercise it would issue Barrick 3 million more shares and grant a 2.5% royalty on any gold recovered from the Grizzly Gulch property. The company says its total package would be 35,292 acres. The filing's cover page lists South Dakota as the state of incorporation, whereas earlier filings said Nevada; the filing does not explain this.
The final tranche of the private placement closed August 2, 2021: 120,550 shares at $4.50 for $542,475. The total is 11,166,161 shares for gross proceeds of $50,247,724.50. This ends the financing. The filing reports the second tranche as 8,734,611 shares for $39,305,749.50, slightly different from the 8,725,389 shares and $39,264,251 in the July 21 filing; the filing does not explain the difference.
What it means for a shareholder
120,550 new shares at $4.50 to raise about $542,475. That's 0.2% dilution: every existing holder's slice gets 0.2% smaller. If you held $1,000 of shares (222 at the issue price), your slice goes from 0.000369% to 0.000368% of the company. To keep it you'd need 0 more shares - about $0 at the issue price.
21 July 2021capital raising announcement▲ GoodMajor
The second tranche of the private placement closed on July 21, 2021, with 8,725,389 shares sold at $4.50 for $39,264,251. With the first tranche, 11,036,389 shares have been sold for $49,663,750.50, already above the $45 million announced in June. Director Robert Quartermain bought 50,000 shares. A final tranche is expected by July 30.
What it means for a shareholder
8.7m new shares at $4.50 to raise about $39.3m. That's 13% dilution: every existing holder's slice gets 13% smaller. If you held $1,000 of shares (222 at the issue price), your slice goes from 0.000369% to 0.000322% of the company. To keep it you'd need 32 more shares - about $144 at the issue price.
25 June 2021capital raising announcement▲ GoodMajor
The first tranche of the private placement closed on June 23, 2021: 2,311,000 shares at $4.50 for gross proceeds of $10,399,500. On June 24 the company increased the maximum offering from 5,555,556 shares to 10,000,000 shares, or up to $45 million, with closing expected around July 9. This continues the June 15 financing.
What it means for a shareholder
2.3m new shares at $4.50 to raise about $10.4m. That's 3.8% dilution: every existing holder's slice gets 3.8% smaller. If you held $1,000 of shares (222 at the issue price), your slice goes from 0.000384% to 0.000369% of the company. To keep it you'd need 9 more shares - about $41 at the issue price.
16 June 2021capital raising announcement▲ GoodMajor
On June 15, 2021 the company announced a planned non-brokered private placement of up to 5,555,556 shares at $4.50 each, for up to $25 million, expected to close by July 9, 2021. Proceeds are to go to general working capital and exploration of its gold properties. Existing shareholders face dilution if it completes in full (inference).
What it means for a shareholder
5.6m new shares at $4.50 to raise about $25.0m. That's 9.0% dilution: every existing holder's slice gets 9.0% smaller. If you held $1,000 of shares (222 at the issue price), your slice goes from 0.000395% to 0.00036% of the company. To keep it you'd need 22 more shares - about $99 at the issue price.
27 May 2020capital raising announcement● NeutralMajor
On May 26, 2020 the company agreed with JR Resources Corp. that JR would lend a further $1,150,000 and gets the right (not obligation) to buy up to 142,566,667 shares at $0.15 (about 64.24% fully diluted) by October 15, 2020. The loan combines with the earlier $300,000 into an unsecured $1,450,000 note at 0.25% interest due December 31, 2021, convertible at $0.15 (later possibly lower, floor $0.10), and the company expects to use proceeds for up to $350,000 of mineral interests, up to $500,000 for an airborne survey and the rest for general purposes. If JR buys, it could take control of the board (one more JR designee than company designees) and existing holders would be heavily diluted, but the filing says no closing is assured. The $300,000 advanced in February 2020 appears to be the note from the March 2020 claims acquisition, which is now folded in (inference).
Between January and February 2019 the company sold 2,300,000 shares plus 2,300,000 warrants for $230,000 in cash in private deals. Each warrant lets the holder buy a share at $0.10 on or before June 30, 2020, so the shares sold at $0.10 each and exercise could add more shares. This continues the company's pattern of small private share sales.
On January 25, 2015 the board approved a 2015 Omnibus Incentive Plan and authorised 5,200,000 stock options for accredited investors, exercisable at $0.08 for ten years (to January 25, 2025). The $0.08 price is set against a $0.07 closing price on January 23, 2015. If exercised these would add new shares, diluting existing holders; the filing does not say who received the options. The plan document itself says it takes effect on shareholder approval, which this filing does not report.
28 Jan 2013capital raising announcement● NeutralMajor
On January 28, 2013 the company sold 2,500,000 restricted shares at $0.10 each to a group of private investors, raising $250,000 with no fees or commissions and no warrants. The press release says fourteen accredited investors took part, including four former senior Homestake Mining executives, and that the money is for working capital including work on the Blind Gold Property and planned summer 2013 exploration. This is the first funding raised since the move to gold, and the new shares dilute existing holders.
On August 19, 2008 the company issued a US$100,000 convertible note to Four Tong Investments Limited, due August 13, 2010 at 5% interest. The holder can convert into shares at the greater of the prior-day market price or $0.10 per share, and can demand immediate repayment on a default. This is new debt that could convert into shares.
8 Jan 2007capital raising announcement● NeutralMajor
On December 29, 2006 the company closed a second private placement of 6,000,000 units at $0.25 each, raising $1,500,000 for working capital, on the same terms as the November placement (Series A warrants at $0.50 for one year, Series B at $1.00 for two years). Together with November, the two placements raised $2,500,000 for 10,000,000 shares. The 3,000,000 Series A and 3,000,000 Series B warrants add further potential dilution. A finder's fee of up to 5% applies.
What it means for a shareholder
6.0m new shares at $0.250 to raise about $1.5m. Shares on issue before the raise aren't in the record, so the dilution can't be worked out.
30 Nov 2006capital raising announcement● NeutralMajor
On November 22, 2006 the company closed a private placement of 4,000,000 units at $0.25 each for gross proceeds of $1,000,000, to be used for working capital. Each unit has one share plus half a Series A warrant (exercisable at $0.50 for one year) and half a Series B warrant (exercisable at $1.00 for two years). A cash finder's fee of up to 5% applies on part of the placement. This is the first fundraising since the UEM acquisition and adds shares and potential dilution from 2,000,000 Series A and 2,000,000 Series B warrants.
On June 8, 2006 the company (then called Lakefield Ventures Inc.) issued 8,000,000 shares to International Mineral Resources Ltd. (IMR) under an Assignment Agreement dated September 22, 2005. This adds 8,000,000 shares to the share count; the filing does not describe what the shares were for beyond the agreement, which is covered in the next filing.
