LABRADOR GOLD RAISES $2 MILLION FROM EXERCISE OF SHARE PURCHASE WARRANTS Fully funded for an aggressive exploration program at Kingsway
NEWS RELEASE
July 24, 2020
LABRADOR GOLD RAISES $2 MILLION FROM EXERCISE OF SHARE PURCHASE WARRANTS
Fully funded for an aggressive exploration program at Kingsway
TORONTO, ON, July 24, 2020 – Labrador Gold Corp . (TSX-V: LAB) (“LabGold” or the “Company”) is pleased to
announce that it has raised $ 2,039,233 from the exercise of share purchase warrants (the “warrants”) with a
strike price of $0.35 and $0.40. Evanachan Limited, a company owned by Mr. Rob McEwen, Chairman and Chief
Owner of McEwen Mining Inc. elected to exercise 100% of warrants held. The warrant exercise increases the
Company’s cash position to $7.1 million.
“I would like to thank all of our long-term shareholders for increasing their shareholding in the Company
through the exercise of warrants. These new funds allow us to aggressively explore our Kingsway Project and
position us for discovery,” said Roger Moss, President and CEO. “LabGold has a very prospective land position in
what we believe will develop into a significant gold district with more discoveries to come. I invite you to
continue this exciting journey with us.”
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.
About Labrador Gold:
Labrador Gold is a Canadian based mineral exploration company focused on the acquisition an d 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 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). In early July
2020, the Company signed an option agreement to acquire a third license to add to the property package which
now covers approximately 77 km 2. 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. 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 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 mor e 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 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 news 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.
Roger Moss, PhD., P.Geo., is the qualified person responsible for all technical information in this release.
The Company has 91,584,175 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.
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 exp ressions 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 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 cautio ned not to put undue reliance on such
forward-looking statements.