Linear Gold Corp. Announces $5,000,000 Financing
3:23 PM ET, March 13, 2009
HALIFAX, NOVA SCOTIA , Mar 13, 2009 (Marketwire via COMTEX) -- NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE U.S.
Linear Gold Corp. (LRR) ("Linear Gold" or the "Corporation") is pleased to announce that it has negotiated, subject to regulatory approval, a non-brokered private placement with Sprott Asset Management, consisting of 4,545,455 units at a price of $1.10 per unit. Each unit will consist of one common share and one-half warrant, with each whole warrant entitling the holder to purchase an additional common share at a price of $1.50 per share for a period of twenty-four months from the closing of the offering, which is anticipated to occur on or about March 19, 2009 and is subject to receipt of applicable regulatory approvals, including approval of the TSX.
The proceeds from the private placement will be used for working capital and to fund the acquisition, exploration and development of high quality gold focused assets.
Wade K. Dawe, President and Chief Executive Officer of Linear Gold Corp., states, "We are delighted to further strengthen Linear's balance sheet as the Corporation continues to review potential acquisitions, focusing on high quality, advanced gold exploration and development opportunities. Upon completion of this private placement, Linear Gold will be debt-free with approximately $30 million in cash with 32.5 million shares outstanding, positioning the Company extremely well for strategic acquisitions."
Linear Gold Corp. is actively exploring for gold and base metal deposits through joint ventures with Kinross Gold in Mexico and Everton Resources in the Dominican Republic.
Wade K. Dawe, President
This news release contains "forward-looking statements". Such forward-looking statements, especially those that address resource quantities, grades, and contained metals, are generally made on the basis of estimation and extrapolation from a limited number of drill holes and metallurgical studies. Where the company expresses or implies an expectation as to future events or results, such expectation or belief is expressed in good faith and is believed to have a reasonable basis for the statement. However, forward-looking statements are subject to risks and uncertainties which could cause actual results to differ significantly from future results expressed or implied. These risks include, but are not limited to, metal price volatility, political and operational risks in the countries where we operate, and a degree of uncertainty in connection with evaluating a deposit until the deposit has been extensively drilled on closely spaced centres.
SOURCE: Linear Gold Corp.
Linear Gold Corp.
Wade K. Dawe
President & Chief Executive Officer
(902) 422-1421
Website: www.lineargoldcorp.com
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