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TORONTO, June 27, 2024 (GLOBE NEWSWIRE) -- Labrador Gold Corp. (TSX.V:LAB | OTCQX:NKOSF | FNR: 2N6) (“LabGold” or the “Company”) is pleased to announce that, further to its press releases dated April 22, 2024 and May 23, 2024, Shareholders voting at the Annual General and Special Meeting of Shareholders (the “Meeting”) held on June 27, 2024 approved the sale of the Kingsway Project to New Found Gold Corp. (“NFG”) by a majority of 87.8%.
Shareholders also overwhelmingly approved the re-election of the Board of Directors, the re-appointment of the Company’s auditors and the ratification of the 2023 Stock Option Plan.
NFG will acquire a 100% interest in the Kingsway Project, including all property and mining rights associated with the property, (the “Transaction”) in exchange for $20,000,000 CAD (the “Purchase Price”) payable and satisfied by the delivery to LabGold of such number of NFG Common Shares (the “Consideration Shares”) determined by dividing the Purchase Price by the closing price of the NFG Common Shares on the last trading day prior to the closing of the Transaction. The Transaction is scheduled to close on July 9, 2024. The Consideration Shares will be subject to a resale restriction of four months and one day from the closing of the Transaction.
Additional information regarding the Transaction is set out in the Information Circular mailed to registered shareholders and filed on SEDAR+ at www.sedarplus.com.
The TSX Venture Exchange (“TSXV”) has in no way passed upon the merits of the Transaction and has neither approved nor disapproved the contents of this news release.
About Labrador Gold
Labrador Gold is a Canadian based mineral exploration company focused on the acquisition and exploration of prospective gold projects in Eastern Canada.
The 100% owned Kingsway project is located in the Gander area of central Newfoundland. The four licenses comprising the Kingsway project cover approximately 12km of the Appleton Fault Zone which is associated with numerous gold occurrences in the region. Infrastructure in the area is excellent located just 18km from the town of Gander with road access to the project, nearby electricity and abundant local water. LabGold’s drilling targeting high-grade epizonal gold mineralization along the Appleton Fault Zone has outlined seven gold prospects to date. The Company has approximately $6.4 million in working capital.
The Hopedale property covers much of the Florence Lake greenstone belt that stretches over 60 km. The belt is typical of greenstone belts around the world but has been underexplored by comparison. Work to date by Labrador Gold show gold anomalies in rocks, soils and lake sediments over a 3 kilometre section of the northern portion of the Florence Lake greenstone belt in the vicinity of the known Thurber Dog gold showing where grab samples assayed up to 7.8g/t gold. In addition, anomalous gold in soil and lake sediment samples occur over approximately 40 km along the southern section of the greenstone belt. Labrador Gold now controls approximately 40km strike length of the Florence Lake Greenstone Belt.