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Private Placement: Lithoquest Resources (TSXV:LDI)

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The company is looking to raise gross proceeds of up to $900,000 from the placement of both regular and flow-through units. With the regular units, the company intends to raise gross proceeds of up to $400,000 through the issuance of up to 4 million units priced at $0.10 per unit. With the flow-through units, the company intends to raise gross proceeds of up to $500,000 through the issuance of up to 4 million units priced at $0.125 per unit.

Additional Information:

Company: Lithoquest Resources
Website: http://www.lithoquest.com
Stock Symbol: TSXV: LDI
Date Published: May 31, 2021
Transcript: Available

Video Transcript:

I’m Megan Edwards for Investmentpitch Media

Lithoquest Resources has announced a non-brokered private placement.

The company is looking to raise gross proceeds of up to $900,000 from the placement of both regular and flow-through units.

With the regular units, the company intends to raise gross proceeds of up to $400,000 through the issuance of up to 4 million units priced at $0.10 per unit.

With the flow-through units, the company intends to raise gross proceeds of up to $500,000 through the issuance of up to 4 million units priced at $0.125 per unit.

Both units consist of 1 share and one-half a warrant, with each full warrant exercisable at $0.15 for 24 months.

In addition to the usual prospectus exemptions, the company will accept subscriptions under the existing shareholder and Investment Dealer exemptions.

The shares are currently trading at $0.115.

Funds will be used to advance the company’s gold and base metal properties in northern Ontario and for general working capital purposes.

The company recently entered into an Option Agreement with Landore Resources Canada Inc. to acquire a 100% interest in two gold projects located in northwest Ontario.

The two large land packages, which cover more than 50 kilometers of prospective greenstone geology, are located 115 km east of the past-producing Pickle Crow Mine and 150 km southeast of Newmont Corporation's Musselwhite Mine.

Both the 5,494 hectare Miminiska Gold Project and the 12,482 hectare Keezhik Gold Project are situated within the Miminiska-Fort Hope greenstone belt and host drill-confirmed gold mineralization that is similar in style to the nearby Musselwhite gold mine.

These projects are in the same area as the company’s Attwood property.

The projects came with an extensive exploration database with more than 40,000 metres of historical drilling results, which suggests there is potential on both projects to expand the known zones of gold mineralization as well as to make new discoveries.

At Miminiska, gold mineralization has been identified over 14 kilometres with results as high as 5.75 g/t gold over 20.8 metres.

At Keezhik, historical work has identified several zones of gold mineralization with results as high as 16 g/t gold over 2 metres.

Management cautions that these historical results have not been independently verified and therefore should not be relied upon.

Bruce Counts, President and CEO, stated: "Large land packages with extensive gold mineralization, a significant historical database and excellent discovery potential are rarely available. The Company has assessed many gold projects in the last 12 months and these properties stood out as an exceptional opportunity to add value for investors. Lithoquest intends to immediately evaluate the existing data prior to conducting field work on both projects in the summer of 2021. The field work will provide a foundation for a drill program in early 2022."

For more information, please visit the company’s website at www.lithoquest.com, call 604-506-2804 or by email info@lithoquest.com.
I’m Megan Edwards for Investmentpitch Media