Laurion Mineral Exploration Inc. said July 6 that a private investment group agreed to participate in two financings in connection with a previously signed letter of intent between the parties.
In late April, the investor agreed to finance and support the development and potential extraction of gold, silver, copper and zinc from historical surface stockpiles at the company's Ishkoday property in Ontario.
Subject to executing binding definitive agreements, the parties will focus on processing the surface stockpiles with the intent to potentially extract the gold content under a new subsidiary.
The new entity will initially be a wholly owned incorporated subsidiary of Laurion, which will sell the surface stockpiles to the newly established unit in exchange for additional shares.
The company is raising up to C$1 million via a private placement of its units priced at 7 Canadian cents apiece, and closing is expected before July 13.
As part of the LOI, the investor will take part in the placement, and its participation is expected to raise about C$500,000.
The financing will be followed by a C$4.5 million investment in the company's new subsidiary upon completion of a positive preliminary economic assessment regarding processing and extracting gold and other valuable materials from the stockpiles.
Laurion plans to use the proceeds to complete the PEA and for general exploration and development activities.