Lumina Gold gets C$10 million credit facility for drilling costs

By Mary-Katherine Stinson

Lexington, Ky., July 6 – Lumina Gold Corp. established a C$10 million unsecured credit facility in a private placement with the company’s largest shareholder, Ross Beaty, to provide short-term financing for the Cangrejos project’s remaining drilling costs, according to a company press release.

The new facility also provides short-term financing for the pre-feasibility study costs and general corporate and working capital purposes.

The facility bears interest of 10% per year and matures on the earlier of July 5, 2023, two business days after the company receives aggregate gross proceeds from one or more equity financings of more than C$15 million, or the date of a change of control of the company at which time it must be repaid in full.

Subject to the acceptance of the TSX Venture Exchange in connection with the new facility, the company plans to grant bonus warrants of 3 million share purchase warrants to Mr. Beaty entitling him to purchase one company share at C$0.38 at any time during a 24-month period. This term will be reduced to 12 months if the loan is repaid prior to July 5, 2023.

The company stated it expected the Cangrejos project drilling to be completed by August and that it expects to have the results of the pre-feasibility study with Ausenco in the second quarter of 2023.

Lumina is a Vancouver, B.C.-based precious and base metals exploration and development company focused on the Cangrejos Gold-Copper Project located in El Oro Province, southwest Ecuador.

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