VANCOUVER, British Columbia, July 09, 2018 (GLOBE NEWSWIRE) -- Labrador Gold Corp. (TSX-V:LAB) (“Labrador Gold” or the “Company”) announced today its intention to complete a non-brokered private placement offering (the "Private Placement") of up to 10,200,000 units (“Units”) at a price of $0.25 per Unit for aggregate gross proceeds of up to $2,550,000. Each Unit will comprise one common share of the Company (“Share”) and one-half of a warrant (“Warrant”). Each whole Warrant entitles the holder thereof to purchase one additional Share at a price of $0.35 for a period of 24 months from closing.
The Company further announces that it intends to complete a non-brokered private placement of up to 1,500,000 flow-through units ("FT Units") at a price of $0.30 per Unit for aggregate gross proceeds of up to $450,000 (the "FT Offering"). Each FT Unit will be comprised of one flow-through common share ("FT Share") and one-half of a warrant (“Warrant”). Each whole Warrant entitles the holder thereof to purchase one additional Share at a price of $0.40 for a period of 24 months from closing.
The Private Placement is subject to regulatory approval, including approval of the TSX Venture Exchange. For further details, please contact the Company. All securities issued in connection with the Private Placement will be subject to a hold period of four months from the date of closing. The Company may pay a Finder’s Fee on all or a portion of the Private Placement and FT Offering.
The net proceeds from the Private Placement will be used by the Company to continue exploration on its Labrador properties and for general working capital purposes.
The securities offered pursuant to the Private Placement have not been and will not be registered under the U.S. Securities Act of 1933, as amended, or applicable state securities laws, and may be not be offered or sold in the United States absent registration or an exemption from such registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.
About Labrador Gold:
Labrador Gold is a Canadian based mineral exploration company focused on the acquisition and exploration of prospective gold projects in the Americas. In 2017 Labrador Gold signed a Letter of Intent under which the Company has the option to acquire 100% of the 896 square kilometre (km2) Ashuanipi property in northwest Labrador and the Nain (503 km2) and Hopedale (458 km2) properties in eastern Labrador.
The Hopedale property covers much of the Hunt River and Florence Lake greenstone belts that stretch over 80 km. The belts are typical of greenstone belts around the world but have been underexplored by comparison. Initial work by Labrador Gold during 2017 show gold anomalies in soils and lake sediments over a 3 kilometre section of the northern portion of the Florence Lake greenstone belt in the vicinity of the known Thurber Dog gold showing where grab samples assayed up to 7.8g/t gold. In addition, anomalous gold in soil and lake sediment samples occur over approximately 40 kilometres along the southern section of the greenstone belt (see news release dated January 25th 2018 for more details).
The Ashuanipi gold project is located just 35 km from the historical iron ore mining community of Schefferville, which is linked by rail to the port of Sept Iles, Quebec in the south. The claim blocks cover large lake sediment gold anomalies that, with the exception of local prospecting, have not seen a systematic modern day exploration program. Results of the 2017 reconnaissance exploration program following up the lake sediment anomalies show gold anomalies in soils and lake sediments over a 15 kilometre long by 2 to 6 kilometre wide north-south trend and over a 14 kilometre long by 2 to 4 kilometre wide east-west trend. The anomalies appear to be broadly associated with magnetic highs and do not show any correlation with specific rock types on a regional scale (see news release dated January 18th 2018). This suggests a possible structural control on the localization of the gold anomalies. Historical work 30 km north on the Quebec side led to gold intersections of up to 2.23 grams per tonne (g/t) Au over 19.55 metres (not true width) (Source: IOS Services Geoscientifiques, 2012, Exploration and geological reconnaissance work in the Goodwood River Area, Sheffor Project, Summer Field Season 2011). Gold in both areas appears to be associated with similar rock types.
Roger Moss, PhD., P.Geo., is the qualified person responsible for all technical information in this release.
The Company has 38,992,552 common shares issued and outstanding and trades on the TSX Venture Exchange under the symbol LAB.
For more information please contact:
Roger Moss, President and CEO
Tel: 416-704-8291
Or visit our website at: www.labradorgold.com
Twitter: @LabGoldCorp
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.