TORONTO, ONTARIO–(Marketwired – June 16, 2016) –
NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE U.S.
Lago Dourado Minerals Ltd. (“Lago” or the “Company“) (TSX VENTURE:LDM) is pleased to announce that it has closed its previously announced non-brokered private placement (the “Offering“) pursuant to which it has issued 12,000,000 subscription receipts (“Subscription Receipts“) at a price of $0.10 per Subscription Receipt to raise aggregate gross proceeds of $1,200,000, effective June 14, 2016. Each Subscription Receipt entitles the holder to acquire one common share of the Company automatically without any additional payment upon the satisfaction of all conditions precedent (the “Conditions Precedent“) to the previously announced acquisition by the Company of the property interests of GPM Metals Inc. located in the Sandy Lake district of Northwestern Ontario (the “Properties“). The gross proceeds of the Offering will be held in escrow and released to the Company upon conversion of the Subscription Receipts. In the event that the Conditions Precedent are not satisfied prior to the date which is four months following the closing of the Offering, the Subscription Receipts shall be cancelled and the gross proceeds of the Offering shall be returned to subscribers. Insiders of the Company subscribed for 1,140,000 Subscription Receipts in the Offering.
The Company plans to use the proceeds of the Offering to fund exploration activities on the Properties and for general corporate purposes. The Offering remains subject to the final approval of the TSX Venture Exchange. All securities issued and issuable in the Offering are subject to a statutory hold period expiring on October 15, 2016.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy and / or accuracy of this release.
Forward Looking Statements – Certain information set forth in this news release may contain forward-looking statements that involve substantial known and unknown risks and uncertainties. These forward-looking statements are subject to numerous risks and uncertainties, certain of which are beyond the control of Lago, including, but not limited to the failure to complete the acquisition of Properties from GPM Metals Inc. or the failure of the Subscription Receipts to be converted, either as currently proposed or at all, the impact of general economic conditions, industry conditions, volatility of commodity prices, currency fluctuations, dependence upon regulatory and shareholder approvals, changes in the proposed use of proceeds of the Offering and exploration risk. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements.