Laurentian Goldfields Ltd. (TSX VENTURE:LGF) has announced that the non-brokered private placement offering previously announced on February 3rd, 2011, has been oversubscribed by 31%.
The Offering will now consist of up to 8.7 million units ("units") at a purchase price of $0.30 per unit, for total proceeds of up to CDN $2.6 million.
Each unit will consist of one non-flow through 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 Exchange is at a price greater than $0.15 above the exercise price of a whole common share purchase 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 Offering.
The Offering 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.
Source: Laurentian Goldfields Ltd.