| ||March 20, 2008|
Lund Arranges Private Placements To Raise $2.5 Million
| ||Lund Gold Ltd. (TSX-V: LGD) ("Lund") is pleased report that it has, subject to regulatory approval, arranged a brokered private placement of up to $2,000,000 of common share units and flow-through units. A maximum of $1,570,000 of these gross proceeds may be raised through the sale and issuance of flow-through units. The flow-through units will be issued at a price of $0.30 and the common shares will be issued at a price of $0.24. The gross proceeds will be used primarily to fund exploration work on its McFaulds Lake Property. Lund has been granted the option, from Noront Resources Ltd., to acquire a 50% legal and beneficial interest in 13 claim blocks covering a total of 169 units in the 'Ring of Fire', McFaulds Lake, Ontario, near Noront's nickel copper discovery.|
Each unit will consist 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 for a period of no longer than two years from the closing date. J.F. Mackie & Company Ltd. of Calgary, Alberta, has agreed to act as Lund's agent in respect of the brokered placement and will receive an 8% cash commission and broker warrants equal to 10% of the number of units sold under this placement. Each broker warrant will entitle the purchase of one Lund share at a price of $0.24 per share for a period of two years from the closing date.
Lund is also pleased to report that it has arranged, subject to regulatory approval, a non-brokered private placement of up to 1,100,000 flow-through units and up to 858,000 common share units on the same terms as the brokered private placement, for aggregate proceeds of up to $535,920. The closing of the non-brokered private placement shall occur on the same closing date as the brokered private placement, but the brokered private placement is not contingent on the Corporation closing the nonbrokered private placement. A finder's fee will also be payable to an arm's length third party in respect of this private placement.
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
This document contains "forward-looking statements" within the meaning of applicable Canadian securities regulations. All statements other than statements of historical fact herein, including, without limitation, statements regarding exploration plans and our other future plans and objectives, are forward-looking statements that involve various risks and uncertainties. Such forward-looking statements include, without limitation, estimates of exploration investment and the scope of exploration programs. There can be no assurance that such statements will prove to be accurate, and future events and actual results could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from our expectations are disclosed in the Company's documents filed from time to time via SEDAR with the Canadian regulatory agencies to whose policies we are bound. Forward-looking statements are based on the estimates and opinions of management on the date the statements are made, and we do not undertake any obligation to update forward-looking statements should conditions or our estimates or opinions change. Forward-looking statements are subject to risks, uncertainties and other factors, including risks associated with mineral exploration, price volatility in the mineral commodities we seek, and operational and political risks. Readers are advised not to place undue reliance on forward-looking statements.
You can view the Next News Releases item: Wed Apr 16, 2008, Lund Closes Private Placements Of $2.5 Million
You can view the Previous News Releases item: Thu Feb 28, 2008, Option Agreement With Noront Resources Ltd. To Acquire 50% Of 13 Claim Blocks In "Ring Of Fire"
You can return to the main News Releases page, or press the Back button on your browser.