Labrador Gold Shareholders Approve Sale of Kingsway Project
28 June 2024 - 7:30AM
Labrador Gold Corp. (TSX.V:LAB | OTCQX:NKOSF | FNR: 2N6)
(“
LabGold” or the “
Company”) is
pleased to announce that, further to its press releases dated April
22, 2024 and May 23, 2024, Shareholders voting at the Annual
General and Special Meeting of Shareholders (the
“
Meeting”) held on June 27, 2024 approved the sale
of the Kingsway Project to New Found Gold Corp.
(“
NFG”) by a majority of 87.8%.
Shareholders also overwhelmingly approved the
re-election of the Board of Directors, the re-appointment of the
Company’s auditors and the ratification of the 2023 Stock Option
Plan.
NFG will acquire a 100% interest in the Kingsway
Project, including all property and mining rights associated with
the property, (the “Transaction”) in exchange for
$20,000,000 CAD (the “Purchase Price”) payable and
satisfied by the delivery to LabGold of such number of NFG Common
Shares (the “Consideration Shares”) determined by
dividing the Purchase Price by the closing price of the NFG Common
Shares on the last trading day prior to the closing of the
Transaction. The Transaction is scheduled to close on July 9, 2024.
The Consideration Shares will be subject to a resale restriction of
four months and one day from the closing of the Transaction.
Additional information regarding the Transaction
is set out in the Information Circular mailed to registered
shareholders and filed on SEDAR+ at www.sedarplus.com.
The TSX Venture Exchange (“TSXV”) has in no way
passed upon the merits of the Transaction and has neither approved
nor disapproved the contents of this news release.
About Labrador Gold
Labrador Gold is a Canadian based mineral
exploration company focused on the acquisition and exploration of
prospective gold projects in Eastern Canada.
The 100% owned Kingsway project is located in
the Gander area of central Newfoundland. The four licenses
comprising the Kingsway project cover approximately 12km of the
Appleton Fault Zone which is associated with numerous gold
occurrences in the region. 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. LabGold’s
drilling targeting high-grade epizonal gold mineralization along
the Appleton Fault Zone has outlined seven gold prospects to date.
The Company has approximately $6.4 million in working capital.
The Hopedale property covers much of the
Florence Lake greenstone belt that stretches over 60 km. The belt
is typical of greenstone belts around the world but has been
underexplored by comparison. Work to date by Labrador Gold show
gold anomalies in rocks, 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 km along the southern section of the greenstone
belt. Labrador Gold now controls approximately 40km strike length
of the Florence Lake Greenstone Belt.
The Company has 170,009,979 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
X: @LabGoldCorp
This News Release should not be considered a comprehensive
summary of the Transaction. Completion of the Transaction is
subject to a number of conditions including, but not limited to,
TSXV approval. The Transaction cannot close until the required
final approval from TSXV. There can be no assurance that the
Transaction will be completed as proposed or at all.
Investors are cautioned that, except as disclosed in the
Information Circular prepared in connection with the Transaction,
any information released or received with respect to the
Transaction may not be accurate or complete and should not be
relied upon.
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
expressions 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 cautioned not to put undue reliance on such forward-looking
statements
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