| ||April 16, 2008|
Lund Closes Private Placements Of $2.5 Million
| ||Further to its news release of March 20, 2008 Lund Gold Ltd. (TSX-V: LGD) ("Lund") has today issued a total of 8,975,704 shares, a portion on a flow-through basis, for total gross proceeds of $2,533,850. The net proceeds will be used primarily to fund exploration work on Lund's McFauld's Lake Property, held under option from Noront Resources Ltd. in the "Ring of Fire" district of Northern Ontario. Details are as follow:|
Pursuant to a brokered private placement of common share units and flow-through units, Lund has issued a total of 1,790,000 common share units at the price of $0.24 for common share unit proceeds of $429,600, and issued a total of 5,230,000 flow-through share units at the price of $0.30 for flowthrough share unit proceeds of $1,569,000. J.F. Mackie & Company Ltd. of Calgary, Alberta, acted as Lund's agent in respect of the brokered placement and received a commission of 8% of $1,998,600 and broker compensation warrants entitling the purchase of up to 702,000 shares at $0.24 until April 16, 2010.
Pursuant to a non-brokered private placement of common share units and flow-through units, Lund has issued a total of 857,676 common share units at the price of $0.24 for common share unit proceeds of $205,842, and issued a total of 1,098,028 flow-through share units at the price of $0.30 for flow-through share unit proceeds of $329,408. A cash finder's fee of 8% of $270,000 is payable to an arm's length third party in respect of this private placement along with compensation warrants entitling the purchase of up to 102,500 shares at $0.24 until April 16, 2010.
Each unit consists of one share and one half share purchase warrant, with every whole warrant entitling the purchase of one additional common share of Lund at $0.40 per share until April 16, 2010. Consequently, Lund has issued a total of 4,487,852 full warrants to private placement investors and a total of 804,500 compensation warrants as set out above.
All securities issued pursuant to this placement are subject to a four-month hold period expiring on August 17, 2008.
To find out more about Lund Gold Ltd. (TSX-V: LGD), visit our website at www.lundgold.com.
On behalf of the Board of Directors of
LUND GOLD LTD.
THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY AND ACCURACY OF THIS RELEASE
You can view the Next News Releases item: Thu May 1, 2008, Project News
You can view the Previous News Releases item: Thu Mar 20, 2008, Lund Arranges Private Placements To Raise $2.5 Million
You can return to the main News Releases page, or press the Back button on your browser.