- Labrador Gold (LAB) has closed a C$15 million financing backed by Eric Sprott and New Found Gold (NFG)
- Sprott acquired 11,111,111 working capital units for total consideration of $9,999,999.90
- New Found Gold acquired 5,555,556 WC units for total consideration of $5,000,000.40
- The company will use the proceeds to fund the exploration program at its Kingsway Project in Newfoundland
- New Found Gold is advancing its 100-per-cent owned high-grade 1,500 km2 Queensway Gold Project near Gander, Newfoundland
- Labrador Gold is a mineral exploration company focused on prospective gold projects in Eastern Canada
- New Found Gold (NFG) opened the day up 0.33 per cent trading at $9.09 per share
- Labrador Gold (LAB) opened the day up 3.66 per cent trading at $0.85 per share
Labrador Gold (LAB) has closed a C$15 million financing backed by Eric Sprott and New Found Gold (NFG).
The company closed a non-brokered private placement of 16,666,667 working capital units at $0.90 per unit.
Each WC unit consists of one Labrador common share and one-half of one common share purchase warrant.
Each full warrant entitles the holder to acquire one common share for $1.05 until May 18, 2023.
Eric Sprott, through 2176423 Ontario Ltd., a corporation he beneficially owns, acquired 11,111,111 WC units for total consideration of $9,999,999.90.
Sprott now beneficially owns and controls 12.4 per cent of the company on a non-diluted basis and approximately 17.5 per cent on a fully diluted basis.
New Found Gold acquired 5,555,556 WC units for total consideration of $5,000,000.40.
The company now owns and controls 8.6 per cent of Labrador Gold on a non-diluted basis and approximately 12.3 per cent on a partially-diluted basis.
Labrador will use the proceeds to fund the exploration program at its Kingsway Project in Newfoundland.
Gold mineralization at Big Vein on the Kingsway Project includes six occurrences of visible gold, assays from samples of which range from 1.87 g/t to 1,065 g/t gold.
Roger Moss, President and CEO of Labrador Gold, commented,
“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.”
New Found Gold is advancing its 100-per-cent owned high-grade 1,500 km2 Queensway Gold Project near Gander, Newfoundland.
Labrador Gold is a mineral exploration company focused on prospective gold projects in Eastern Canada.
New Found Gold (NFG) opened the day up 0.33 per cent trading at $9.09 per share.
Labrador Gold (LAB) opened the day up 3.66 per cent trading at $0.85 per share.
