Credit Facility Conversion
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San Lorenzo Gold Announces Entering Into an Advisory Engagement with Argonaut, a Proposed Private Placement and Provides a Salvadora Drilling Update
Thenewswire· 2025-12-11 14:00
Core Viewpoint - San Lorenzo Gold Corp. has engaged Argonaut Corporate Finance Limited as a strategic financial advisor and plans to conduct a non-brokered private placement to raise up to $4 million for exploration and working capital purposes [1][2][3][6]. Advisory Engagement with Argonaut - The advisory engagement with Argonaut is for an initial term of six months, extendable by mutual agreement, focusing on the Salvadora Gold/Copper project and other properties in Chile [3]. - Argonaut will receive a monthly compensation of $5,000 and 1,000,000 warrants at an exercise price of $0.80 for two years [4]. Private Placement - San Lorenzo intends to complete a private placement of units for gross proceeds of up to $4 million, with each unit priced at $0.62, consisting of one common share and one-half of a warrant [6]. - The Argonaut Group will participate as a cornerstone investor, contributing $2 million to the offering [6]. - The proceeds will be used for exploration on the Salvadora property and general working capital [8]. Conversion of Credit Facilities - Tailwind Capital Neo Fund Ltd. will convert advances from two credit facilities into common shares, with $1 million converted at $0.20 per share and $235,190 at $0.35 per share [12]. - This conversion will eliminate outstanding advances under both facilities upon closing of the offering [12]. Repayment of Term Loan - A term loan of $1 million to Lithium Chile Inc. will be satisfied by issuing units for 50% of the indebtedness at the offering price and repaying the remaining 50% in cash from the offering proceeds [13]. Drilling Update - San Lorenzo is currently drilling a fourth hole on its Cerro Blanco porphyry target, with results expected in January 2026 [14]. Company Overview - San Lorenzo is focused on advancing its flagship Salvadora property in Chile's mega-porphyry belt, with prior drilling indicating significant gold and copper resources [15].