REG - Lexington Gold Ltd - Equity Fundraise and Broker Appointment

Lexington GoldAnnouncement

17/04/2025 07:00

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RNS Number : 4377F  Lexington Gold Limited  17 April 2025

17 April 2025

 

THIS ANNOUNCEMENT AND THE INFORMATION CONTAINED HEREIN IS RESTRICTED AND IS
NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR
INDIRECTLY, IN OR INTO THE UNITED STATES, AUSTRALIA, NEW ZEALAND, JAPAN, THE
REPUBLIC OF SOUTH AFRICA, THE REPUBLIC OF IRELAND OR ANY OTHER JURISDICTION IN
WHICH IT WOULD BE UNLAWFUL TO DO SO.

THIS ANNOUNCEMENT IS FOR INFORMATION PURPOSES ONLY AND SHALL NOT CONSTITUTE AN
OFFER TO SELL OR ISSUE OR THE SOLICITATION OF AN OFFER TO BUY, SUBSCRIBE FOR
OR OTHERWISE ACQUIRE ANY NEW COMMON SHARES OF LEXINGTON GOLD LTD IN ANY
JURISDICTION IN WHICH ANY SUCH OFFER OR SOLICITATION WOULD BE UNLAWFUL.

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION AS DEFINED IN ARTICLE 7 OF THE
MARKET ABUSE REGULATION NO. 596/2014 ("MAR") AS IT FORMS PART OF UK DOMESTIC
LAW BY VIRTUE OF THE EUROPEAN UNION (WITHDRAWAL) ACT 2018 ("UK MAR"). MARKET
SOUNDINGS, AS DEFINED IN MAR, WERE TAKEN IN RESPECT OF THE PLACING WITH THE
RESULT THAT CERTAIN PERSONS BECAME AWARE OF THIS INSIDE INFORMATION, AS
PERMITTED BY MAR. UPON THE PUBLICATION OF THIS ANNOUNCEMENT, THIS INSIDE
INFORMATION IS NOW CONSIDERED TO BE IN THE PUBLIC DOMAIN.

 

Lexington Gold Ltd

("Lexington Gold" or the "Company")

 

£530K Equity Fundraise and appointment of

Optiva Securities as joint broker

 

Fundraise completed at market price with new and existing investors

 

Lexington Gold (AIM: LEX;  OTCQB: LEXLF), the gold exploration and
development company with projects in South Africa and the USA, is pleased to
announce that the Company has  raised, in aggregate, gross proceeds of
£530,000 (the "Fundraising") from a combination of new and existing
shareholders, via the issue of 15,588,240 new common shares of US$0.003 each
in the capital of the Company ("Common Shares") at a price of 3.4 pence per
 new Common Share (the "Placing Price").

 

The Company has raised £530,000 before expenses (the "Fundraising") at 3.4
pence per common share ("Ordinary Shares") (the "Fundraising Price") for the
issue of 15,588,240 new Ordinary Shares (the "Fundraising Shares") conditional
upon admission of the Fundraising Shares to trading on AIM ("Admission").

 

Use of Proceeds: The net proceeds of the Fundraise are intended to be used by
the Company to carry out the following activities and for general working
capital:

 

·    Supporting ongoing exploration activities and permitting across
Lexington Gold's South African and USA gold projects

 

·    Supporting ongoing activities relating to the Jelani Resources
Proprietary Limited joint venture with Harmony Gold Mining Company Limited as
well as progressing the discussions with Gold One Africa Limited at the
Ventersburg project.

 

 

Ed Nealon, Non-Executive Chairman of Lexington Gold, commented:

"We are very pleased with the outcome of this capital raise, completed at
market price, in what remains a challenging market environment. The strong
backing from our existing shareholders, combined with new investor interest,
highlights growing recognition of the value within our portfolio.

 

"Over the past 12 months, we have achieved a number of significant milestones,
including the formalisation of a JORC-compliant Mineral Resource Estimate of
over 6 million ounces at Jelani, as well as establishing a JORC Exploration
Target exceeding 5 million ounces at Bothaville. These achievements reinforce
the scale and potential of our South African gold assets.

 

"The funds raised will enable us to accelerate key work programmes, including
advancing technical and economic studies under the Jelani JV with Harmony
Gold, progressing due diligence and preparatory work for the potential JV with
GoldOne at Ventersburg, and continuing exploration activities at our highly
prospective projects.

 

"We are also pleased to welcome Optiva Securities as our joint broker. Their
involvement in this raise and ongoing support will play an important role in
strengthening our capital markets presence and investor engagement.

 

"We thank all shareholders for their continued confidence and support as we
enter an exciting new phase of growth and project advancement"

 

Further Details on the Fundraising: Pursuant to the Fundraising, in aggregate,
15,588,240 new Common Shares will be issued at the Fundraising Price to
certain existing shareholders and new investors conditional upon admission of
the new Common Shares to trading on AIM ("Admission").  The Fundraising
comprises a placing of 3,823,530 new Common Shares to raise £130,000 at the
Fundraising Price (the "Placing"), via the Company's joint broker, Optiva
Securities Ltd ("Optiva Securities") and direct share subscription for a total
of 11,764,710 new Common Shares at the Fundraising Price to raise £400,000
(the "Share Subscription").

The issue price of 3.4 pence per share reflected the closing mid market price
of Lexington's common shares on 16 April 2025, being the latest practicable
date prior to this announcement, enabling the Company to complete the raise on
a non-dilutive basis.

The new Common Shares will represent, in aggregate, approximately 3.8 per
cent. of the Company's enlarged issued share capital following Admission.

 

The new Common Shares to be issued pursuant to the Fundraising will be issued
fully paid and rank pari passu in all respects with the Company's existing
Common Shares.

 

Related Party Transaction - Substantial Shareholder Participants: The
participation in the Share Subscription, as set out in the table below, by
certain of the Company's existing substantial shareholders, namely Mark Creasy
(via Yandal Investments Pty Ltd), Pure Ice Ltd and Orasa (a.k.a Doris)
Chiaratanasen constitute related party transactions pursuant to Rule 13 of the
AIM Rules for Companies. Accordingly, the Board, having consulted with the
Company's Nominated Adviser, Strand Hanson Limited, consider such
participations to be fair and reasonable insofar as the Company's shareholders
are concerned.

 

Appointment of Optiva Securities as Joint Broker: Optiva Securities have been
appointed as the Company's joint broker with immediate effect.

 

Application to trading on AIM: The Fundraising is conditional on Admission. It
is expected that Admission will become effective and that dealings in the new
Common Shares will commence on or around 8.00 a.m. on 24 April 2025.

 

Total Voting Rights: On Admission, the number of Common Shares in issue
outside treasury and the total voting rights in the Company will be
414,557,849. This figure may be used by shareholders in the Company as the
denominator for the calculations by which they will determine if they are
required to notify their interest in, or a change to their interest in,
Lexington Gold.

 

Further AIM Disclosures: The table below shows the expected resultant
shareholdings of the substantial shareholders who are participating in the
Fundraising and associated percentage holdings of total voting rights (TVR) in
the Company following Admission.

 

 Shareholder                        Current Shareholding  Fundraising Shares  Resultant shareholding   % of enlarged TVR at Admission
 Yandal Investments Pty Ltd             53,254,768            2,941,177              56,195,945        13.56%
 Pure Ice Ltd                           65,810,946            4,411,765              70,222,711        16.94%
 Orasa (a.k.a Doris) Chiaratanasen      42,349,200            1,911,765              44,260,965        10.68%

 

 

For further information, please contact:

 

 Lexington Gold Ltd                                      www.lexingtongold.co.uk (http://www.lexingtongold.co.uk)

 Bernard Olivier (Chief Executive Officer)               via Yellow Jersey

 Edward Nealon (Chairman)

 Mike Allardice (Group Company Secretary)

 Strand Hanson Limited (Nominated Adviser)               www.strandhanson.co.uk (http://www.strandhanson.co.uk)

 Matthew Chandler / James Bellman / Abigail Wennington   T: +44 207 409 3494

 Optiva Securities (Joint Broker)                        www.optivasecurities.com (http://www.optivasecurities.com)
 Bartu Ciftci / Christian Dennis                         T: +44 203 981 4178

 Peterhouse Capital Limited (Joint Broker)               www.peterhousecap.com (https://peterhousecap.com/)

 Duncan Vasey / Lucy Williams (Broking)                  T: +44 207 469 0930

 Eran Zucker (Corporate Finance)

 Yellow Jersey PR Limited (Financial Public Relations)   www.yellowjerseypr.com (http://www.yellowjerseypr.com)

 Charles Goodwin / Annabelle Wills                       T: +44 7747 788 221

 

Note to Editors:

 

Lexington Gold (AIM: LEX) is a gold exploration and development company
currently holding interests in four diverse gold projects, covering a combined
area of approximately 1,675 acres in North and South Carolina, USA and in six
gold projects covering approximately 114,638 hectares in South Africa.

 

Further information is available on the Company's website:
www.lexingtongold.co.uk (http://www.lexingtongold.co.uk) . Neither the
contents of the Company's website nor the contents of any website accessible
from hyperlinks on the Company's website (or any other website) is
incorporated into, or forms part of, this announcement.

 

 

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