Labrador Gold Closes $4.3 Million Final Tranche of Non-Brokered Private Placement

TORONTO, June 26, 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 June 23, 2020) non-brokered private placement of 24,571,429 units (“Units”) at a price of $0.175 per Unit (the “ Unit Offering”) for gross proceeds to LabGold of $4,300,000. 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 until June 25, 2022.

“This new capital gives us the ability to launch an aggressive exploration campaign on our recently acquired Kingsway Project. Kingsway shows excellent potential for gold mineralization, with significant anomalies found in all media sampled along the northwards extension of the Appleton Fault Zone that appears to be a major control of gold in the district,” said Roger Moss, President and CEO of LabGold. “We are currently working to get field crews in place around mid-July and anticipate an exciting summer field season in the Gander area.”

The Company paid an aggregate of $211,475.35 in cash compensation to PI financial (as to $139,807.50), Haywood Securities (as to $7,574.99), Hampton Securities (as to $3,150), Mackie Research (as to $525) and Generic Capital Corporation (as to $60,417.86) . As additional compensation,  the Company issued 1,179,043 broker warrants  (“Broker Warrants”) to PI Financial (as to 798,900), Haywood Securities (as to 43,286), Hampton Securities (as to 18,000), Mackie Research (as to 3,000) and Generic Capital Corporation (as to 315,857). Each Broker Warrant is exercisable at $0.175 until June 25, 2022 to acquire one Common Share.

Insiders of the Company subscribed for 2,106,858 Units 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.

The Common Shares and Unit Warrants comprising the Units and the Broker Warrants have a hold period expiring on October 26, 2020.

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