Sprott and New Found Gold increase positions in Labrador Gold

Studying an outcrop at Labrador Gold's Kingsway project in Newfoundland, 18km northwest of the town of Gander, Newfoundland. Credit: Labrador Gold.

Labrador Gold (TSXV: LAB) has closed a non-brokered private placement, raising $15 million from the sale of 16.7 million working capital units at a price of $0.90 each. A single unit consists of one common share and one-half share purchase warrant. Each full warrant is exercisable to acquire a common share at $1.05 until May 18, 2023.

The units were taken up one-third by New Found Gold (TSXV: NFG; US-OTC: NFGFF) and two-thirds by Eric Sprott.

LabGold will use the finds primarily for its exploration at the Kingsway gold exploration project 18 km northwest of Gander, Newfoundland.  The property was optioned last year.

Of particular interest is the Big Vein auriferous quartz vein that has been traced over 400 metres. There are six visible gold occurrences on surface, and assays of them have ranged from 1.98 grams gold per tonne to 1,065 grams gold per tonne. 

A 20,000-metre drill program is in progress. Two zones of gold mineralization in quartz veining and sulphide mineralization have already been intercepted.

News of the investments sent Labrador Gold’s shares up nearly 10% or $0.08 to $0.90 per share. Over the last year the junior has traded in a range of $0.18 and $0.95 per share.

Labrador Gold has about 127 million common shares outstanding for a market cap of about $114 million.

 

Print

Be the first to comment on "Sprott and New Found Gold increase positions in Labrador Gold"

Leave a comment

Your email address will not be published.


*


By continuing to browse you agree to our use of cookies. To learn more, click more information

Dear user, please be aware that we use cookies to help users navigate our website content and to help us understand how we can improve the user experience. If you have ideas for how we can improve our services, we’d love to hear from you. Click here to email us. By continuing to browse you agree to our use of cookies. Please see our Privacy & Cookie Usage Policy to learn more.

Close