- Labrador Gold (LAB) is looking to raise C$4.05 million to accelerate exploration work at its Kingsway property in Newfoundland and Labrador
- The company intends to issue 7.5 million flow-through units at a price of $0.54 each, comprised of one flow-through common share and one non-flow-through purchase warrant
- Each warrant will be exercisable at a price of $0.60 for a period of two years
- Palisades Goldcorp has agreed to purchase all of the units under the offering, which would results in an 11.7 per cent ownership of Labrador Gold
- Labrador Gold (LAB) is currently down 4.49 per cent and is trading at$0.42 per share
Labrador Gold (LAB) is looking to raise C$4.05 million to accelerate exploration work at its Kingsway property in Newfoundland and Labrador.
under the terms of the placement, the Toronto-based company intends to issue a total of 7.5 million flow-through units at a price of $0.45 each. These units would be comprised of one flow-through common share in Labrador Gold and one non-flow-through purchase warrant.
Each warrant will entitle the holder to acquire an additional common share at a price of $0.60, exercisable over a period of two years from the date of issuance.
Palisades Goldcorp has agreed to acquire all of the units on offer under the placement which, once complete, would result in an 11.7 per cent ownership of Labrador Gold.
Roger Moss, President and CEO of Labrador Gold, said he is pleased with Palisades’ decision to take a significant position in the company.
“Based on their knowledge and experience of the Gander Gold District through their involvement with New Found Gold, we take this as a vote of confidence in our exploration strategy and in the Kingsway Project.
“We are now fully funded for an aggressive exploration program to test the northeastern extension of the Appleton Fault Zone,” he added.
The financing follows a separate announcement released yesterday, in which Labrador Gold revealed a number of promising results from its recently completed soil sampling program at the Kingsway property.
The results show gold concentrations of up to 2.2 grams per tonne, with 50 samples in excess of 0.1 grams per tonne of gold.
Labrador Gold (LAB) is currently down 4.49 per cent and is trading at $0.42 per share at 12:44pm EDT.