Labrador GOLD Closes $9.8 Million Flow-Through Financing Backed BY Eric Sprott and New Found GOLD to Accelerate Exploration at Kingsway
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NEWS RELEASE
April 19, 2021
LABRADOR GOLD CLOSES $9.8 MILLION FLOW-THROUGH FINANCING BACKED BY ERIC SPROTT AND NEW
FOUND GOLD TO ACCELERATE EXPLORATION AT KINGSWAY
Not for distribution to U.S. Newswire Services or for dissemination in the United States
TORONTO, ON, April 19, 2021 – Labrador Gold Corp. (TSX.V:LAB | OTCQX:NKOSF | FNR: 2N6) (“LabGold” or the
“Company”) is pleased to announce that it has closed a non-brokered private placement of 14 million flow
through units (the “FT units”) at a price of $0.70 per FT unit (the “Flow-Through Offering”) for gross proceeds to
LabGold of $9.8 million. New Found Gold Corp. (as to 7 million FT units) and Mr. Eric Sprott (as to 7 million FT
units) purchased the FT units through a donation arrangement. Each FT Unit consists of one flow through
common share and one half a non-flow through share purchase warrant, with each full warrant exercisable to
acquire a Common Share at $0.75 until April 16, 2023.
“I am pleased to welcome New Found Gold and Mr. Sprott as shareholders of LabGold. Their participation in this
financing is a vote of confidence in the Company and in the potential of our Kingsway Project” said Roger Moss,
President and CEO of the Company. “As we ramp up our spring/summer program we are well capitalized to
expand our aggressive exploration targeting Big Vein and the quartz vein corridor to make the next discovery in
the Gander gold district.”
The proceeds of the Flow-Through Offering will be primarily used to fund the Company’s exploration program at
its Kingsway project in Newfoundland. The securities issued are subject to a statutory hold period expiring on
August 17, 2021.
Big Vein Target
The Big Vein target is an auriferous quartz vein exposed at surface that has been traced over 400 metres to date.
Gold mineralization observed at Big Vein includes six occurrences of visible gold, assays of samples from which
range from 1.87g/t to 1,065g/t gold. The visible gold is typically hosted in annealed and vuggy gray quartz, that is
locally stylolitic with v ugs often contain ing euhedral quartz infilling features characteristic of epizonal gold
deposits. A 10,000 metre drill program currently in progress was off to an encouraging start with the first hole
intersecting two zones of significant quartz veining and sulphide mineralization including arsenopyrite, pyrite
and possible boulangerite noted along vein margins and as strong disseminations in the surrounding wall rocks.
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.
The Company gratefully acknowledges the Newfoundland and Labrador Ministry of Natural Resources’ Junior
Exploration Assistance (JEA) Program for its financial support for exploration of the Kingsway property.
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About Labrador Gold
Labrador Gold is a Canadian based mineral exploration company focused on the acquisition and exploration of
prospective gold projects in Eastern Canada.
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 three 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. Infrastructure in the area is excellent located just 18km from the town of Gander wit h road access to
the project, nearby electricity and abundant local water. LabGold recently began a 10,000 metre diamond drill
program targeting high grade gold mineralization associated with the visible gold showing at Big Vein. Following
the closing of the Financing the Company has approximately $20 million in working capital.
The Hopedale property covers much of the Hunt River and Florence Lake greenstone belts that stretch over 80
km. The belts are typical of greenstone belts around the world but have been underexplored by comparison.
Initial work by Labrador Gold during 2017 show gold anomalies in soils and lake sediments over a 3 kilometre
section of the northern portion of the Florence Lake greenstone belt in the vicinity of the known Thurber Dog
gold showing where grab samples assayed up to 7.8g/t gold. In addition, anomalous gold in soil and lake
sediment samples occur over approximately 40 kilometres along the southern section of the greenstone belt
(see news release dated January 25 th 2018 for more details). Labrador Gold now controls approximately 57km
strike length of the Florence Lake Greenstone Belt.
The Ashuanipi gold project is located just 35 km from the historical iron ore mining community of Schefferville,
which is linked by rail t o the port of Sept Iles, Quebec in the south. The claim blocks cover large lake sediment
gold anomalies that, with the exception of local prospecting, have not seen a systematic modern day exploration
program. Results of the 2017 reconnaissance exploration program following up the lake sediment anomalies
show gold anomalies in soils and lake sediments over a 15 kilometre long by 2 to 6 kilometre wide north -south
trend and over a 14 kilometre long by 2 to 4 kilometre wide east- west trend. The anomalies appea r to be
broadly associated with magnetic highs and do not show any correlation with specific rock types on a regional
scale (see news release dated January 18 th 2018). This suggests a possible structural control on the localization
of the gold anomalies. H istorical work 30 km north on the Quebec side led to gold intersections of up to 2.23
grams per tonne (g/t) Au over 19.55 metres (not true width) (Source: IOS Services Geoscientifiques, 2012,
Exploration and geological reconnaissance work in the Goodwood R iver Area, Sheffor Project, Summer Field
Season 2011). Gold in both areas appears to be associated with similar rock types.
The Company has 126,674,397 common shares issued and outstanding and trades on the TSX Venture Exchange
under the symbol LAB.
For more information please contact:
Roger Moss, President and CEO Tel: 416-704-8291
Or visit our website at: www.labradorgold.com
@LabGoldCorp
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies
of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
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Forward-Looking Statements: This news release contains forward -looking statements that involve
risks and uncertainties, which may cause actual results to differ materially from the statements made.
When used in this document, the words “may”, “would”, “could”, “will”, “intend”, “plan”, “anticipate”,
“believe”, “estimate”, “expect” and similar expressions are intended to identify forward- looking
statements. Such statements reflect our current views with respect to future events and are subject to
risks and uncertainties. Many factors could cause our actual results to differ materially from the
statements made, including those factors discussed in filings made by us with the Canadian securities
regulatory authorities. Should one or more of these risks and uncertainties, such as actual results of
current exploration programs, the general risks associated with the mining industry, the price of gold and
other metals, currency and interest rate fluctuations, increased competition and general economic and
market factors, occur or should assumptions underlying the forward looking statements prove incor rect,
actual results may vary materially from those described herein as intended, planned, anticipated, or
expected. We do not intend and do not assume any obligation to update these forward -looking
statements, except as required by law. Shareholders are cautioned not to put undue reliance on such
forward-looking statements.