Laurentian Announces $1,700,000 Non-Brokered Private PlacementJune 22, 2009
Laurentian Goldfields Ltd. (TSX-V: LGF) (“Laurentian”) announces that it intends to complete a non-brokered private placement financing for gross proceeds of up to CAD $1,700,000. The funds will be raised by the Company issuing up to 3.33 million non-flow-through units (“NFT Units”) at a price of $0.15 per Unit and up to 6.56 million flow-through units (“FT Units”) at a price of $0.18 per FT Unit.
“This financing will allow Laurentian to continue exploration and advance our high grade Van Horne project to drill-ready status by year end” stated Andrew Brown, President and Chief Executive Officer of Laurentian. “The Company believes its future success lays in striking a balance between generative alliances with our partners Kinross and AngloGold Ashanti and advancing 100% owned, quality projects such as Van Horne”.
Each NFT Unit consists of one common share and one non-flow-through share purchase warrant; each non-flow-through purchase warrant entitles the holder to purchase one additional common share of the Company for a period of 24 months from closing at a price of $0.25 per share in the first 12 months and $0.35 per share in the subsequent 12 months.
Each FT Unit consists of one flow-through common share and one-half of one non-flow-through share purchase warrant, each whole non-flow-through share purchase warrant entitles the holder to purchase one additional non-flow-through common share of the Company for a period of 24 months from closing at a price of $0.25 per share in the first 12 months and $0.35 per share in the subsequent 12 months.
The warrants will be subject to an acceleration clause such that in the event the closing price of the common shares of Laurentian on the Exchange is greater than Cdn$0.35 during the first year following the date of issuance of the Warrants or Cdn$0.45 during the first year following the date of issuance of the Warrants for 10 consecutive trading days at any time after the date that is four months after the date of issuance of the Warrants, Laurentian will be entitled to accelerate the Warrants upon 21 calendar days’ prior notice and the Warrants will then expire on the 21st calendar day after the date of the notice unless exercised by the holder prior to such date.
Finder’s fees may be payable in connection with the private placement in accordance with TSX Venture Exchange policy. The above transaction will be subject to regulatory approval. The units issued will be subject to a four-month hold period from the closing date.
Laurentian will use the proceeds of the private placement to finance its exploration programs and for general working capital purposes.
About Laurentian Goldfields Ltd.
Laurentian is a team of highly skilled exploration professionals focused on discovery and growth in under-explored regions of mining-friendly jurisdictions. Laurentian generates new projects by employing leading edge exploration concepts and techniques to quickly and cost-effectively screen vast tracts of land for geological and geochemical signatures known to be associated with world class gold deposits.
ON BEHALF OF THE BOARD OF DIRECTORS,
Andrew Brown, M.Sc., P.Geo.
President and CEO
Neither 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.
Some statements in this news release contain forward-looking information. These statements include, but are not limited to, statements with respect to mineral potential and planned exploration, development and production activities. These statements address future events and conditions and, as such, involve known and unknown risks, uncertainties and other factors, which may cause the actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the statements. Such factors include, among others, realized mineralization of properties and the timing and success of future exploration, development and production activities.
For further information, please contact:
Andrew Brown, President and CEO
Tel: (604) 646-1596
Fax: (604) 642-2411