Labrador Gold Increases Private Placement to $5 Million

TORONTO, June 01, 2020 (GLOBE NEWSWIRE) -- Labrador Gold Corp. (TSX-V: LAB) (“LabGold” or the “Company”) is pleased to announce that due to investor demand in connection with its previously announced non-brokered private placement (see news release dated May 28, 2020) it has decided to increase the size of the offering to C$5,000,000.

The Company intends to raise up to $4,000,000 by the issuance of up to 22,857,143 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 issuance of up to 4,000,000 flow through units (the “FT units”) at a price of $0.25 per FT Unit (the “Flow Through Offering”) for gross proceeds to LabGold of $1,000,000 remains unchanged. 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.

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 contain in section 5.5(a) and 5.7(1) (a) of MI 61-101 in that the fair market value of the consideration for the securities of the Company to be issued to the insiders will not exceed 25% of its market capitalization.

About Labrador Gold:

Labrador Gold is a Canadian based mineral exploration company focused on the acquisition and exploration of prospective gold projects in the Americas.

In early March 2020, Labrador Gold acquired the option to earn a 100% interest in the Kingsway project in the Gander area of Newfoundland. The property is along strike to the northeast of New Found Gold’s discovery of 92.86 g/t Au over 19.0 metres on their Queensway property. (Note that mineralization hosted on adjacent or nearby properties is not necessarily indicative of mineralization hosted on the Company’s property). The two licenses comprising the Kingsway project cover approximately 16km of the Appleton fault zone which is associated with gold occurrences in the region, including the New Found Gold discovery. Historical work over the area covered by the Kingsway licenses shows evidence of gold in till, vegetation, soil, stream sediments, lake sediments and float. Infrastructure in the area is excellent located just 18km from the town of Gander with road access to the project, nearby electricity and abundant local water.