Labrador Gold Closes $1 Million Flow-Through Tranche of Non-Brokered Private Placement

TORONTO, June 19, 2020 (GLOBE NEWSWIRE) -- Labrador Gold Corp. (TSX-V: LAB) (“LabGold” or the “Company”) is pleased to announce that it has closed the previously announced (see news release dated May 28, 2020) non-brokered private placement of 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. Each FT Unit is comprised of one flow through share (the “FT Shares”) and one non-flow through share purchase warrant, with each warrant exercisable to acquire a Common Share at C$0.30 until June 18, 2022.

The gross proceeds from the issuance of the FT Shares will be used for “Canadian exploration expenses” and will qualify as “flow-through mining expenditures” (the “Qualifying Expenditures”), as those terms are defined in the Income Tax Act (Canada), which will be renounced to the purchasers of the FT Shares with an effective date no later than December 31, 2020 in an aggregate amount not less than the gross proceeds raised from the issue of the FT Shares.

The FT Shares and Warrants comprising the FT Units have a hold period expiring on October 19, 2020.

The proceeds of the Private Placement will be used to fund LabGold’s exploration program at its Kingsway project.

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.