REG - Lexington Gold Ltd - US$150,000 Unsecured Loan Facility

Lexington GoldAnnouncement

14/03/2023 07:00

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20230314:nRSN8146Sa&default-theme=true

RNS Number : 8146S  Lexington Gold Limited  14 March 2023

14 March 2023

Lexington Gold Ltd

("Lexington Gold" or the "Company")

 

US$150,000 Unsecured Loan Facility

 

Lexington Gold (AIM: LEX), the gold exploration and development company with
projects in North and South Carolina, USA, is pleased to announce that a
wholly owned subsidiary of the Company has entered into a US$150,000 unsecured
loan facility (the "Loan Facility") with Edward Nealon, a director and
Chairman of the Company (the "Lender"), to be utilised to satisfy the group's
ongoing working capital requirements and costs associated with evaluating
potential additional new gold projects/opportunities.

 

Highlights:

 

·   US$150,000 Loan Facility obtained from the Company's Chairman, a
significant shareholder in the Company

·    The Loan Facility provides working capital and financial flexibility
whilst the Company:

o  awaits the assay results from its recent sampling and mapping campaigns at
both the Jennings-Pioneer and Argo projects; and

o  evaluates potential additional new gold projects/opportunities both in the
Carolinas and in other well-known, global gold producing jurisdictions.

·    The Loan Facility serves to avoid equity dilution for existing
shareholders at the current time

 

Bernard Olivier, CEO of Lexington Gold, commented:

"The purpose of this Loan Facility is to provide the Company with additional
working capital and financial flexibility as it awaits the assay results from
its recent sampling and mapping campaigns at both the Jennings-Pioneer and
Argo projects which will then enable us to design the next phase of work. The
Loan Facility also enables the Company to continue to evaluate and seek to
secure potential additional new gold projects/opportunities in the Carolinas
as well as other well-known, global gold producing jurisdictions, whilst
avoiding equity dilution for shareholders in the current uncertain market
environment."

 

Loan Facility

The purpose of the Loan Facility is to provide the Company with additional
working capital and financial flexibility as it awaits the assay results from
its recent sampling and mapping campaigns at both the Jennings-Pioneer and
Argo projects which will then enable us to design the next phase of work
including generating drill targets, especially at Jennings-Pioneer which
remains a very exciting project for the Company. In addition, it enables us to
continue to evaluate potential additional new gold projects/opportunities,
both in the Carolinas and other well-known global gold producing
jurisdictions, whilst avoiding equity dilution for existing shareholders at
this time.

 

The Loan Facility is unsecured, has a 12-month term from the date of drawdown,
and bears interest at a rate of 5 per cent. per annum, payable on maturity.
The agreement includes customary terms and conditions for a facility of this
nature, including a condition that the Company and its relevant subsidiary
will not pledge or charge any assets to any other creditors without the prior
consent of the Lender, such consent not to be unreasonably withheld. In the
event of any unremedied default, interest shall be payable at a rate of 1 per
cent. per month.

 

Related Party Transaction

The Lender, Edward Nealon, is a director of the Company. The Loan Facility
therefore constitutes a related party transaction pursuant to Rule 13 of the
AIM Rules for Companies. Accordingly, the independent directors in respect of
the Loan Facility, being Rhoderick Grivas, Melissa Sturgess and Bernard
Olivier, having consulted with the Company's Nominated Adviser, Strand Hanson
Limited, consider that the terms of the Loan Facility are fair and reasonable
insofar as the Company's shareholders are concerned.

 

The Board believes that the Loan Facility represents the most attractive
funding option at this time and avoids equity dilution for the Company's
shareholders whilst awaiting assay results and evaluating potential additional
new gold projects/opportunities.

 

 

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

 WH Ireland Limited (Joint Broker)                       www.whirelandplc.com (http://www.whirelandplc.com)
 Katy Mitchell / Ben Good / Enzo Aliaj                   T: +44 207 220 1666

 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)

 Tom Randell / Annabelle Wills                           T: +44 7948 758 681

 

 

The information contained within this announcement is deemed by the Company to
constitute inside information as stipulated under the Market Abuse Regulation
(EU) No. 596/2014 as it forms part of United Kingdom domestic law by virtue of
the European Union (Withdrawal) Act 2018, as amended by virtue of the Market
Abuse (Amendment) (EU Exit) Regulations 2019.

 

 

- ENDS -

 

 

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 with a JORC
(2012) Total Inferred Resource of 6,976,000t @ 0.94 g/t Au for 210,800 oz of
contained gold. The projects are situated in the highly prospective Carolina
Super Terrane ("CST"), which has seen significant historic gold production and
is host to a number of multi-million-ounce mines operated by majors. It was
also the site of the first US gold rush in the early 1800s, before gold was
discovered in California.

 

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.

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  MSCNKNBBFBKDQND