Labrador Resources Ltd. Announces Revisions to the Previously Announced Proposed Private Placement, Debt Extending Agreements and Credit Facility
Labrador Resources Ltd. Announces Revisions to the Previously Announced Proposed Private
Placement, Debt Extending Agreements and Credit Facility
CALGARY, ALBERTA – April 7, 2026 – Labrador Resources Ltd. (“Labrador” or the “Corporation”)
(TSXV: LTX) announces revised terms to the proposed private placement and of the debt
extension agreements previously announced (see Labrador news release date d February 24,
2026) and an extension to its existing credit facility.
Proposed Private Placement
Labrador intends to proceed with the private placement of up to 8,000,000 common shares
(“Common Shares”) at a price of $0.07 per Common Share for gross proceeds of up to $560,000
(the “Offering”). No warrants will be included in the proposed private placement.
The Corporation may pay commissions of six percent (6%) to qualified finders or agents and
may issue broker warrants (“Broker Warrants”) for up to six percent (6%) of the total number
of Common Shares issued pursuant to the Offering. Any Broker Warrant issued will entitle the
holder to purchase a Common Share at a price of $0.07 for a period of one (1) year from the
date of closing of the Offering.
There is no minimum Offering.
Proceeds from the Offering will be used for general working capital purposes, debt servicing
and expenses related to the Offering.
The Corporation will rely on the Exemption for Sales to Purchasers Advised by Investment
Dealers. In that regard, the Corporation confirms that there is no material fact or material
change related to the Corporation which has not been generally disclosed.
In addition to offering the Common Shares pursuant the Exemption for Sales to Purchasers
Advised by Investment Dealers, the Common Shares are also being offered pursuant to other
available prospectus exemptions, including sales to accredited investors. If subscriptions
received for the Offering based on all available exemptions exceed the maximum Offering
amount of $560,000, Common Shares will be allocated pro rata among all subscribers qualifying
under all available exemptions.
The Common Shares and Broker Warrants that may be issued pursuant to the Offering will be
subject to a four month and one day hold period.
Completion of the Offering remains subject to the approval of the TSX Venture Exchange.
Debt Extending Agreements
Labrador also announces that it has revised the terms of the debt extending agreements with
the holders of a Debenture, a Note Payable and a Term Loan (the “Existing Indebtedness”) that
were announced in Labrador’s February 24, 2026 news release as follows:
1) None of the amounts owing will be convertible into Common Shares;
2) The maturity date of each instrument has been extended to December 31, 2027;
3) Am extension fee equal to ten percent (10%) of the amounts owing under each facility
will be added to the principal amount owing as at December 31, 2025; and
4) The interest rate payable will increase to twelve percent (12%).
Credit Facility
Labrador has negotiated an extension to the April 4, 2022 secured credit facility (the “ Credit
Facility”) such that advances under the Credit Facility may be made, up to the same $650,000
limit, until December 31, 2027. No amounts are currently drawn under the Credit Facility. The
Credit Facility interest rate has been increased to 12% (from the current rate of 7%). Other than
the term extension and interest rate revision, all other terms of the Credit Facility remain
unchanged.
About Labrador
Labrador's Common Shares are listed on the TSX -V under the symbol " LTX". More information
on Labrador may be viewed on www.sedarplus.ca.
Cautionary Note Regarding Forward-Looking Statements
This news release includes certain "forward -looking statements" under applicable Canadian
securities legislation. Forward-looking statements include, but are not limited to, the
Corporation's ability to obtain necessary approvals from the TSX Venture Exchange with respect
to the Offering and the use of proceeds of the Offering . Forward-looking statements are
necessarily based upon estimates and assumptions that, while considered reasonable, are subject
to known and unknown risks, uncertainties and other factors which may cause the actual results
and future events to differ materi ally from those expressed or implied by such forward -looking
statements. Such factors include, but are not limited to: general business, economic, competitive,
political and social uncertainties; delay or failure to receive board, shareholder or regulatory
approvals; the price of metals including gold, silver copper , cobalt and uranium; and the results
of exploration programs. There can be no assurance that such statements will prove to be
accurate, as actual results and future events could differ materially from those anticipated in such
statements. Accordingly, readers should not place undue reliance on forward-looking statements.
Labrador disclaims any intention or obligation to update or revise any forward -looking
statements, whether as a result of new information, future events or otherwise, except as
required by law.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined
in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
For further information, please contact:
Jeff Graw, CEO
Email: [email protected]
Or:
John Aihoshi, CFO
Email: [email protected]