Under the deal, the company will specifically use the proceeds from the financing to fund operating expenses, working capital and general corporate activities related to the exploration and development of its La Candelaria gold and silver project in Mexico.
According to the company, the equity financing agreement does not involve any debt.
Lone Star is a gold exploration and development firm, and its acquisition and exploration approach is strategically focused on proven, stable precious metal regions in America and Mexico.
The company currently owns concessions covering 800 hectares in the La Candelaria project in Chihuahua, Mexico.
