- Mining company Labrador Gold (LAB) has seen its shares jump significantly after announcing the success of its recent private placement
- Through the placement, the company issued 7.5 million flow-through units at C$0.54 each, for gross proceeds of $4.05 million
- Palisades Goldcorp purchased all of the placement’s flow-through units, through a donation arrangement with Labrador Gold
- Placement proceeds will be used to accelerate exploration at the company’s Kingsway property in Labrador and Newfoundland
- Labrador Gold (LAB) is up 25.68 per cent, and is currently trading for $0.46 per share
Mining company Labrador Gold (LAB) has seen its shares jump significantly after announcing the success of its recent private placement.
The company first announced plans for a non-brokered private placement on October 6, 2020. Labrador Gold has now closed the offering, after raising the intended amount.
Through the placement, the company issued 7.5 million flow-through units at C$0.54 each, for gross proceeds of $4.05 million.
Each flow-through unit contained one flow-through common share in Labrador Gold and one non-flow-through share purchase warrant. Each warrant is exercisable into a common share for $0.60, until October 29, 2022.
Canada’s resource-focused merchant bank, Palisades Goldcorp, purchased all of the private placement’s flow-through units. This was the result of a donation agreement which Palisades entered into with Labrador Gold.
As a result of the placement, Palisades has become an insider of the company and now holds approximately 13.57 per cent of it.
Placement proceeds will be used to accelerate exploration at Labrador Gold’s Kingsway property, located in Labrador and Newfoundland.
The company’s President and CEO, Roger Moss, commented on Palisades’ participation in the company’s capital raising and on the use of the proceeds.
“Palisades becoming an insider of LabGold is a vote of confidence in the company and in the potential of the Kingsway Project.
“We are now well capitalised to continue our aggressive exploration program to make the next delivery in the Gander gold district,” he said.
Labrador Gold (LAB) is up 25.68 per cent and trading for $0.46 per share, as of 10:38am EDT.