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Labrador Gold Announces $3.5 Million Private Placement
TORONTO, May 28, 2020 (GLOBE NEWSWIRE) -- Labrador Gold Corp. (TSX-V: LAB) (“LabGold” or the “Company”) is pleased to announce that it intends to complete a non
About this update from Labrador Gold Corp
[{"type":"text","content":" TORONTO, May 28, 2020 (GLOBE NEWSWIRE) -- Labrador Gold Corp. (TSX-V: LAB) (“LabGold” or the “Company”) is pleased to announce that it intends to complete a non-brokered private placement to raise up to C$2,500,000 through the issuance of up to 14,285,714 units (“Units”) at a price of C$0.175 per Unit (the “Unit Offering”). Each Unit is comprised of one common share of LabGold (“Common Share”) and one Common Share purchase warrant (a ”Unit warrant”), with each Unit warrant exercisable to acquire a Common Share at C$0.30 for a period of two years after the date of issuance. The Company further announces that it intends to complete a non-brokered private placement of up to 4,000,000 flow through units (the “FT units”) at a price of C$0.25 per FT Unit (the “Flow Through Offering” and collectively with the Unit Offering, the “Private Placement”) for gross proceeds to LabGold of C$1,000,000. Each FT Unit is comprised of one flow through share and one non-flow through share purchase warrant, with each warrant exercisable to acquire a Common Share at C$0.30 for a period of two years after the date of issuance LabGold may pay a finder’s fee to one or more arms’ length parties who introduce LabGold to investors, in accordance with the policies of the TSX Venture Exchange. The securities issued will be subject to a four-month-and-one-day statutory hold period from the date of issuance. Closing of the Private Placement remains subject to TSX Venture Exchange approval. The proceeds of the Private Placement will be used primarily to fund LabGold’s exploration program at its Kingsway project and its Hopedale Project. A portion of the proceeds will be used for general working capital purposes. The Company also announces the appointments of Mr. Bill Johnstone as Corporate Secretary and Mr. Eric Myung as Chief Financial Officer. Both positions were previously held by Ms. Aurora Davidson who has resigned to focus on a new opportunity. The Board thanks Ms. Davidson for her service to the Company over the many years she was part of the management team and wish her well in her new endeavour. Insiders of the Company may subscribe for a portion of the Private Placement. The insider private placements are exempt from the valuation and minority shareholder approval requirements of Multilateral Instrument 61-101 (“MI 61-101”) by virtue of the exemptions...