Labrador GOLD Increases Private Placement to $4.3 Million
NEWS RELEASE June 23, 2020
LABRADOR GOLD INCREASES PRIVATE PLACEMENT TO $4.3 MILLION
TORONTO, ON., June 23, 2020 – 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
releases dated May 28 and June 1, 2020) it has decided to increase the size of the non flow -through offering to
C$4,300,000.
The Company intends to raise up to C$4,300,000 by the issuance of up to 24,571,429 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.
LabGold may pay a finder’s fee to one or more arms’ le ngth 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 Placemen t 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 are subscribing for 1,835,356 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 issue d to the insider s 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.
The Hopedale property covers much of the Florence Lake greenstone belt that stretch es over 60 km. The b elt is typical
of greenstone belts around the world but ha s 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 25th 2018 for more details).
The Ashuanipi gold project is located just 35 km from the historical iron ore mining community of Schefferville, which is
linked by rail to 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 appear to be broadly associated with magnetic highs and do not
show any correlation with specific rock types on a regional scale (see ne ws release dated January 18 th 2018). This
suggests a possible structural control on the localization of the gold anomalies. Historical 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 (n ot true width) (Source:
IOS Services Geoscientifiques, 2012, Exploration and geological reconnaissance work in the Goodwood River Area,
Sheffor Project, Summer Field Season 2011). Gold in both areas appears to be associated with similar rock types.
The Company has 57,039,022 common shares issued and outstanding and trades on the TSX Venture Exchange under
the symbol LAB.
The technical content of this news r elease was approved by Roger Moss Ph.D., P.Geo, President and CEO of the
Company and a qualified person as defined by National Instrument 43-101.
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.
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. Ma ny 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 s hould assumptions underlying the forward
looking statements prove incorrect, 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.