Business
Labrador Gold Closes $15 Million Financing Backed by Eric Sprott and New Found Gold to Accelerate Exploration at Kingsway
TORONTO, May 19, 2021 (GLOBE NEWSWIRE) -- Labrador Gold Corp. (TSX.V:LAB | OTCQX:NKOSF | FNR: 2N6) (“LabGold” or the “Company”) is pleased to announce that it h
About this update from Labrador Gold Corp
[{"type":"text","content":" TORONTO, May 19, 2021 (GLOBE NEWSWIRE) -- Labrador Gold Corp. (TSX.V:LAB | OTCQX:NKOSF | FNR: 2N6) (“LabGold” or the “Company”) is pleased to announce that it has closed a non-brokered private placement of 16,666,667 working capital units (the “WC units”) at a price of $0.90 per unit (the “WC Offering”) for gross proceeds to LabGold of $15 million. New Found Gold Corp. (as to 5,555,556 WC units) and Mr. Eric Sprott (as to 11,111,111 WC units) purchased the WC units with each WC unit consisting of one common share and one half a share purchase warrant, with each full warrant exercisable to acquire a Common Share at $1.05 until May 18, 2023. “I am very pleased that Mr. Sprott and New Found Gold have decided to increase their positions in LabGold. Their participation in this financing at a premium to market tells me they are very bullish on the potential of our Kingsway Project and like what our technical team is doing,” said Roger Moss, President and CEO of the Company. “I certainly appreciate their commitment to funding our exploration efforts which I expect to pay off soon. We continue to aggressively drill Big Vein guided by the initial results announced last week and will deploy additional funds to drilling as we aim to make the next discovery in the Gander gold district.” The proceeds of the WC Offering will be primarily used to fund the Company’s exploration program at its Kingsway project in Newfoundland. The securities issued are subject to a statutory hold period expiring on September 19, 2021. Mr. Eric Sprott, through 2176423 Ontario Ltd., a corporation which is beneficially owned by him, acquired 11,111,111 WC units under the WC Offering for total consideration of $9,999,999.90. Prior to the WC Offering, Mr. Sprott beneficially owned or controlled 7,000,000 Common Shares and 3,500,000 Warrants of the Company. As a result of the WC Offering, Mr. Sprott beneficially owns and controls 18,111,111 Common Shares of the Company and 9,055,555 Warrants representing approximately 12.4% of the issued and outstanding Common Shares of the Company on a non-diluted basis and approximately 17.5% on a fully diluted basis assuming exercise of the Warrants. The WC units were acquired by Mr. Sprott for investment purposes. Mr. Sprott has a long-term view of the investment and may acquire additional secu...