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.