February 3, 2011- Vancouver, British Columbia -- Laurentian Goldfields Ltd. (TSX-V: LGF) ("Laurentian" or, the "Company") announces that the Company intends to complete a non-brokered private placement financing for proceeds up to $2,000,000 by issuance of 6.67 million units ("Units") at a purchase price of $0.30 per unit.
Each unit will consist of one common share and one-half common share purchase warrant. Each whole warrant will entitle the holder to purchase one additional share of the Company at a price of $0.45 in the first 12 months after the date of issuance, and $0.55 in the second 12 months after the date of issuance. Each whole warrant will be subject to an acceleration clause, whereby, if the closing price of the Company's shares on the TSX Venture Exchange is at a price greater than $0.15 above the exercise price of a whole warrant for a period of 10 consecutive trading days, the Company will have the right to accelerate the expiry date of the warrants on 20 days notice. Such notice by the Company to the holders of the warrants may not be given until 4 months and one day after the closing of the financing.
The financing is subject to certain conditions, including regulatory acceptance. Finder's fees may be payable in connection with this private placement.
Laurentian Goldfields Ltd. intends to use the proceeds of this financing for drill programs at the newly acquired Thundercloud Project (see News Release Jan 13, 2011) as well as developing other projects and for general working capital.
About Laurentian Goldfields Ltd.
Laurentian Goldfields Ltd. is a team of highly skilled exploration professionals focused on discovery in Canada and currently operates several active exploration projects in Ontario and Quebec. Laurentian Goldfields Ltd. is committed to advancing shareholder benefit by employing leading edge exploration concepts and techniques and the acquisition of high quality exploration properties in Canada.
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 the intended completion of financings and the use of proceeds there from, 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, the timing and success of the proposed financings, 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) 646-8000
Fax: (604) 642-8088