TORONTO, Oct. 06, 2020 (GLOBE NEWSWIRE) — Labrador Gold Corp. (TSX.V:LAB | OTCQX:NKOSF | FNR: 2N6) (“LabGold” or the “Company”) is pleased to announce that it has agreed to issue on a non-brokered private placement basis 7,500,000 flow through units (the “FT units”) at a price of $0.54 per FT unit (the “Flow-Through Offering”), pursuant to a structured flow-through financing, for gross proceeds to LabGold of $4,050,000. Each FT Unit is comprised of one flow through common share and one non-flow through share purchase warrant, with each warrant exercisable to acquire a Common Share at C$0.60 for a period of two years after the date of issuance. Palisades Goldcorp Ltd. has agreed to purchase all of the FT units through a donation arrangement. As a result of the Flow-Through Offering, Palisades Goldcorp will become an insider of the Company holding approximately 11.7% of the Company after giving effect to the offering.

“I am very pleased with Palisades’ decision to add to their position in LabGold,” said Roger Moss, President and CEO of the Company. “Based on their knowledge and experience of the Gander Gold District through their involvement with New Found Gold, we take this as a vote of confidence in our exploration strategy and in the Kingsway Project. We are now fully funded for an aggressive exploration program to test the northeastern extension of the Appleton Fault Zone.“

LabGold may pay a finder’s fee to one or more arms’ length parties, in accordance with the policies of the TSX Venture Exchange. The securities issued will be subject to a four-month-and-one-day statutory hold period from the date of issuance. Closing of the Private Placement is expected to take place on or about October 29, 2020 and remains subject to TSX Venture Exchange approval.

The proceeds of the Flow-Through Offering will be used to fund LabGold’s exploration program at its Kingsway project in Newfoundland.

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