VANCOUVER, BRITISH COLUMBIA--(Marketwired - Jun 17, 2013) - La Ronge Gold Corp. (TSX VENTURE:LAR) (the "Company") is pleased to announce the closing of the private placement (the "Offering") announced on June 12, 2013. Pursuant to the Offering, the Company has issued 1,000,000 flow-through common shares at a price of $0.20 per share for gross proceeds of $200,000.
In connection with the closing, the Company paid finder's fees consisting of cash in the amount of $18,000 and finder's warrants exercisable to acquire up to 40,000 common shares of the Company at a price of $0.24 per share for a period of 12 months.
The proceeds of the placement will be used by the Company to incur eligible Canadian Exploration Expenses, as defined by the Income Tax Act (Canada). The securities sold pursuant to the Offering are subject to a four month hold period, expiring on October 18, 2013.
The Company also announces that it has amended its property option agreement (the "Option Agreement") dated September 22, 2011, with North-Sask. Ventures Ltd. to accelerate and immediately acquire a 100% interest in the Pap-Preview claims located in the Lac La Ronge area of Saskatchewan.
In addition to $35,000 already paid, 300,000 common shares already issued and $1.5 million in expenditures already incurred, the Company will pay $40,000 and issue 800,000 common shares to accelerate its 100 % earn-in. The Company will grant a 2.5% NSR of which an initial 1% may be purchased for $1 million and the remaining 1.5% for $2 million at any time prior to a production decision. All prior conditional payments have been replaced with the following obligations: (i) payment of $60,000 upon receipt of a positive feasibility study and (ii) issuance of 625,000 common shares upon making a production decision. The amendment is subject to the approval of the Exchange.
The Company has also made application to the TSX Venture Exchange to extend the expiry date of 3,261,665 share purchase warrants expiring June 22, 2013 (the "Warrants"), for an additional year to June 22, 2014. The Warrants were originally issued to subscribers pursuant to a private placement which closed on June 22, 2011. The Warrants originally provided for each Warrant to be exercisable into a common share of the Company at a price of $0.30 for a period of two years. There will be no change in the exercise price.
About La Ronge Gold Corp.
La Ronge Gold is a Vancouver-based rapidly advancing gold-resource growth and development company, focused on the expansion of high-grade gold deposits in one of Canada's emerging gold producing regions, the La Ronge Gold Belt, northern Saskatchewan. The Company has significant land positions (52,932 Ha. or 131,000 acres) in the region. The Company also holds other gold projects located in Ontario, Canada.
Doug Turnbull, P.Geo, has read the technical information in this news release.
For more information about La Ronge Gold Corp., please go to www.larongegold.com.
Rasool Mohammad, B.Sc. (Mining), President & CEO
This News Release includes forward-looking information and statements, which may include, but are not limited to, information and statements regarding or inferring the future business, operations, financial performance, prospects and other plans, intentions, expectations, estimates, and beliefs of the Company. Information and statements which are not purely historical fact are forward-looking statements. Forward-looking information and statements involve and are subject to assumptions and known and unknown risks, uncertainties, and other factors which may cause actual events, results, performance, or achievements of the Company to be materially different from future events, results, performance, and achievements expressed or implied by forward-looking information and statements herein. Although the Company believes that any forward-looking information and statements herein are reasonable, in light of the use of assumptions and the significant risks and uncertainties inherent in such information and statements, there can be no assurance that any such forward-looking information and statements will prove to be accurate, and accordingly readers are advised to rely on their own evaluation of such risks and uncertainties and should not place undue reliance upon such forward-looking information and statements. Any forward-looking information and statements herein are made as of the date hereof, and except as required by applicable laws, the Company assumes no obligation and disclaims any intention to update or revise any forward-looking information and statements herein, or to update the reasons that actual events or results could or do differ from those projected in any forward-looking information and statements herein, whether as a result of new information, future events or results, or otherwise, except as required by applicable laws.
- Commodity Markets