Labrador Gold to raise $3.5M for exploration activities

• Labrador Gold (TSXV:LAB) is set to raise a total of C$3.5 million through two separate non-brokered private placements
• Under the first, the company will issue up to 14.3 million units at a price of 17.5 cents each for gross proceeds of $2.5 million
• In the second, up to four million flow-through units will be issued at a price of $0.25 each for gross proceeds of $1 million
• The proceeds raised under the placements will be primarily used to fund exploration programs at its Kingsway and Hopedale Projects
• Labrador Gold (LAB) is currently up 18.92 per cent and is trading at $0.22 per share, with a market cap of $12.55 million

Labrador Gold (TSXV:LAB) is set to raise a total of C$3.5 million through two separate non-brokered private placements.

Under the first, the Vancouver-based exploration company will issue up to 14.3 million units at a price of 17.5 cents each for a total of $2.5 million.

These units will consist of one common share in the company, as well as one common share purchase warrant.

Each of these warrants will entitle the holder to acquire an additional common share at a price of 30 cents, exercisable for a period of two years from the date of closing.

Under the second private placement, Labrador Gold will issue up to four million flow-through units at a price of $0.25 each for a total of $1 million. Each flow-through unit will be comprised of one flow-through share and one non-flow-through share purchase warrant.

Each warrant will be exercisable to acquire an additional common share in Labrador Gold at a price of $0.30 for a period of two years after the date of issuance.

Today’s announcement noted that a finder’s fee may be applicable to one or more parties who introduce the company to investors, pursuant to the TSX Venture Exchange’s policies.

The proceeds raised under the private placements will be primarily used to fund exploration programs the Labrador Gold’s Kingsway and Hopedale Projects. A portion will also go towards general working capital purposes.

Separately, Labrador Gold has announced the appointment of Bill Johnstone as Corporate Secretary and Eric Myung as Chief Financial Officer.

Both of these positions were previously held by Aurora Davidson, who has resigned to pursue other opportunities.

Labrador Gold (LAB) is currently up 18.92 per cent and is trading at $0.22 per share at 3:24pm EDT.