Lexington Gold secures $0.15m loan from its chairman

Carolinas-focussed explorer and developer Lexington Gold announced on Tuesday that it has secured a $0.15m unsecured loan facility from a wholly-owned subsidiary.

The AIM-traded firm said the loan would be provided by its chairman Edward Nealon, and would be used to support ongoing working capital requirements and to evaluate potential additional new gold projects and opportunities.

It said the facility would provide it with financial flexibility while it awaited assay results from its recent sampling and mapping campaigns at both the Jennings-Pioneer and Argo projects.

The funds would also be used to evaluate potential new gold projects and opportunities in the Carolinas, and other well-known, global gold producing jurisdictions.

“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,” said chief executive officer Bernard Olivier.

“The loan facility also enables the company to continue to evaluate and seek to secure potential additional new gold projects and 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.”

At 1308 GMT, shares in Lexington Gold were up 5.54% at 4.8p.

Reporting by Josh White for Sharecast.com.