Vancouver, British Columbia -- March 7, 2011 - Laurentian Goldfields Ltd. (TSX-V: LGF) ("Laurentian" or the "Company") is pleased to announce that it has completed its previously announced non-brokered private placement of 8,863,334 Units priced at $0.30 per Unit, for aggregate gross proceeds to Laurentian of $2,659,000.20.
Each "Unit" consists of one common share and one-half of a common share purchase warrant (a "Warrant"). Each whole Warrant entitles the holder to purchase one common share of the Company for up to 24 months after the date of issuance at a price of $0.45 in the first 12 month period and at a price of $0.55 thereafter. The Warrants are subject to an acceleration clause, whereby, if the closing price of the Company's shares on the TSX Venture Exchange stays at a price more than $0.15 above the exercise price of the Warrants for a period of 10 consecutive trading days beginning on or after July 8, 2011 the Company has the right to accelerate the expiry date of the Warrants on 20 days' notice.
Kinross Gold Corporation ("Kinross") participated in the financing, and maintained its 4.6% interest in the Company. Kinross is Laurentian's exploration partner at the Goldpines North Joint Venture, which is currently being drilled.
The Units were primarily placed by Haywood Securities Inc. The Company paid finder's fees of $177,730 and issued 592,433 Finder's Warrants to certain finders, equal to 7% of the proceeds and number of units, respectively, placed by such finders in the financing. Each "Finder's Warrant" is exercisable to purchase one common share of the Company for up to 24 months after the date of issuance at a price of $0.30.
All securities issued or issuable under the financing are subject to a hold period and may not be traded until July 8, 2011, except as permitted by Canadian securities legislation and the TSX Venture Exchange.
Laurentian Goldfields Ltd. intends to use the proceeds of the financing for drill programs at the newly acquired Thundercloud Project (see news release January 13, 2011), developing other projects and general working capital.
About Laurentian Goldfields Ltd.
Laurentian 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 by the acquisition of high quality exploration properties in Canada.
ON BEHALF OF THE BOARD OF DIRECTORS,
Darin Labrenz, 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 use of proceeds of the financing, 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:
Darin Labrenz, President and CEO
Tel: (604) 646-8000
Fax: (604) 646-8088
Michael Joyner, Investor Relations
Tel: (416) 722-4925