As of noon EST, shares of Labrador Gold were trading at C$0.62, up 3.3% for the session. The Eastern Canada-focused gold miner has a market capitalization of approximately C$68.5 million.
Proceeds of the financing will be used to advance the company’s Kingsway gold project, located in the Gander gold district of Newfoundland and contiguous to New Found Gold’s Queensway project, where a high-grade discovery of 92.86 g/t Au over 19.0 metres was made in fall 2019.
Sprott is currently a shareholder of New Found Gold, and recently raised his stake in that company to 18.4% through a C$15 million investment.
“I am pleased to welcome New Found Gold and Mr. Sprott as shareholders of LabGold. Their participation in this financing is a vote of confidence in the company and in the potential of our Kingsway project,” Roger Moss, president and CEO of the company, commented.
“As we ramp up our spring/summer program we are well capitalized to expand our aggressive exploration targeting Big Vein and the quartz vein corridor to make the next discovery in the Gander gold district,” he added.