Labrador Gold acquires new minerals claims in Newfoundland

• Labrador Gold (TSXV:LAB) has signed an agreement to acquire 100 per cent of the rights to a minerals license in Newfoundland 
• The property is made up of 44 claims units between the Kingsway North and South claims blocks, which the company acquired in March this year 
• Labrador can secure 75 per cent of the property by paying C$219,000 in cash, issuing 390,000 shares, and spending $1 million in exploration expenditures over a three-year period, 
• The remaining 25 per cent will require $240,000 in cash and a further $1 million in exploration work before the deal enters its fourth year
• Labrador Gold (LAB) is up seven per cent and is trading at 38 cents per share 

Labrador Gold (TSXV:LAB) has signed an agreement to acquire 100 per cent of the rights to a minerals license in Newfoundland.

The property is made up of 44 claims units between the Kingsway North and South claims blocks, which the company acquired in March this year.

The recently acquired property gives the Toronto-based junior explorer an impressive land parcel amounting to 77 square kilometres.

The property is host to the Cracker gold occurrence, which has returned grab samples that range from 1.8 grams per tonne gold to 61.73 grams per tonne gold.

The option deal initially gives Labrador 75 per cent of the interest in the property should it meet a series of share offers, cash payments and work commitments.

Labrador will need to pay out C$219,000 in cash, issue 390,000 shares in and spend $1 million in exploration expenditures over a three-year period.

In order for Labrador to secure the remaining 25 per cent, it will need to pay out a further $240,000 in cash and complete another $1 million in exploration work before the fourth anniversary of the deal.

CEO of Labrador, Gold Roger Moss said optioning the property would consolidate the company’s land position adding a significant gold occurrence. 

“The cracker showing is another gold occurrence associated with the Appleton Fault zone, a crustal-scale structure that we believe to be a major control of gold in the district.

“We will include the property in our exploration plans for this summer with work expected to begin around mid-jury,” he said. 

Labrador Gold (LAB) is up seven per cent and is trading at 38 cents per share at 2:30 pm EDT.