Laurentian Goldfields Ltd. (TSX-V: LGF) ("Laurentian") announces it has closed the private placement with AngloGold Ashanti Ltd. previously announced on April 29, 2009. Under the private placement, an affiliate of AngloGold Ashanti Ltd., Ashanti Goldfields Services Limited, acquired 4,444,444 units of Laurentian at a price of $0.09 per unit for gross proceeds of $400,000.
Each unit consists of one common share and one common share purchase warrant (the "Warrants"). Each warrant is exercisable into one common share at a price of $0.18 per share for a period of 24 months from the date of issuance. The warrants will not be exercisable if, after giving effect to such exercise, the holder and its joint actors would in the aggregate beneficially own 20% or greater of the total issued and outstanding common shares of Laurentian, immediately after giving effect to such exercise.
All of the shares, and any shares issued upon exercise of the warrants, are subject to a regulatory hold period until October 17, 2009.
Laurentian intends to use the proceeds from the offering for exploration in connection with Laurentian's strategic alliance with AngloGold Ashanti Ltd. and for general working capital purposes.
As a result of the 4,444,444 units of Laurentian acquired by an affiliate of AngloGold Ashanti Ltd. under the private placement, AngloGold Ashanti Ltd. and its affiliates now hold 4,444,444 common shares of Laurentian, representing approximately 17% of the issued and outstanding common shares of Laurentian. In addition, AngloGold Ashanti Ltd. and its affiliates hold 4,444,444 share purchase warrants of Laurentian (which are subject to the exercise restrictions described above). The 4,444,444 common shares and 4,444,444 share purchase warrants represent 25% of the issued and outstanding common shares of Laurentian, calculated on a fully-diluted basis assuming the exercise of the 4,444,444 share purchase warrants. AngloGold Ashanti Ltd. reports acquiring the units for investment purposes. AngloGold Ashanti Ltd. and/or affiliates and/or joint actors may increase or decrease security holdings in Laurentian for investment purposes.
A copy of the early warning report being filed by Ashanti Goldfields Services Limited is available on the SEDAR website under Laurentian's profile at www.sedar.com and may be obtained by contacting AngloGold Ashanti Ltd. at 3rd Floor, 76 Jeppe Street, Johannesburg, 2001, South Africa, telephone +27 (0) 11 637 6813.
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 anticipated use of proceeds 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