Labrador Gold Closes $4.05 Million Flow-Through Financing Backed by Palisades Goldcorp to Accelerate Exploration at Kingsway
TORONTO, Oct. 30, 2020 (GLOBE NEWSWIRE) -- Labrador Gold Corp. (TSX.V:LAB | OTCQX:NKOSF | FNR: 2N6) (“LabGold” or the “Company”) is pleased to announce that it has closed its non-brokered private
placement of 7,500,000 flow through units (the “FT units”) at a price of $0.54 per FT unit (the “Flow-Through Offering”), announced on October 6, 2020, for gross proceeds to LabGold of $4,050,000.
Each FT Unit consists of one flow through common share and one non-flow through share purchase warrant, with each warrant exercisable to acquire a Common Share at $0.60 until October 29, 2022.
Palisades Goldcorp Ltd. purchased all of the FT Units through a donation arrangement. As a result of the Flow-Through Offering, Palisades Goldcorp has become an insider of the Company holding
approximately 13.57% of the Company after giving effect to the offering. The Company paid a finder’s fee of $180,000 to PI Financial Corp. in relation to the offering.
Collin Kettell, Founder & Chairman of Palisades Goldcorp commented: “As the largest shareholder of New Found Gold Corp., Palisades Goldcorp shareholders are benefiting significantly from the high-grade discovery holes and value realization at New Found’s Queensway Project. This includes drill intervals of 19.0 m of 92.9 g/t Au and 41.25 m of 22.3 g/t Au at the Keats Zone. The discoveries at New Found’s Queensway project are along the Appleton Fault Zone which extends onto Labrador’s Kingsway Project.
Sampling along the Appleton Fault Zone has returned significant gold mineralization, for example up to 61.7 g/t Au at the Cracker showing. While at an earlier stage, we believe there is excellent potential to find similar high-grade epizonal style gold mineralization at Kingsway. We are excited to now be the largest shareholder of Labrador Gold, with significant exposure to their next phase of exploration.”
“Palisades becoming an insider of LabGold is a vote of confidence in the Company and in the potential of the Kingsway Project,” said Roger Moss, President and CEO of the Company. “We are now well capitalized to continue our aggressive exploration program to make the next discovery in the Gander gold district.”
The securities issued are subject to a statutory hold period expiring on March 2, 2020.
The proceeds of the Flow-Through Offering will be used to fund LabGold’s exploration program at its Kingsway project in Newfoundland.
Roger Moss, PhD., P.Geo., President and CEO of LabGold, a Qualified Person in accordance with Canadian regulatory requirements as set out in NI 43-101, has read and approved the scientific and technical information that forms the basis for the disclosure contained in this release.
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