
December 18, 2022
Placement made solely to existing major shareholders, demonstrating the strongsupport for Labyrinth’s strategy at its Canadian and WA projects
Labyrinth Resources Limited (ASX: LRL) (‘Labyrinth’ or ‘the Company’) is pleased to announce it has received firm commitments for circa A$1.3 million in a share placement to strategic existing major shareholders at a price of 1.7c per share (Placement).
The Placement price represents the 5-day volume weighted average price (VWAP) of the Company’s shares at close of trade on 14 December 2022, with the closing price on that date also being 1.7c and therefore reflecting a non-discounted pricing mechanism.
The Placement was completed internally to existing Labyrinth shareholders, meaning all the proceeds will be directed towards the Company’s core objectives without the requirement to pay Placement costs or fees.
The Placement is being made to sophisticated investors and the 75,470,588 new shares are expected to be settled on 23 December 2022 following receipt of funds. The new shares will rank equally with existing shares on issue and will be issued using the Company’s existing placement capacity under ASX Listing Rule 7.1, accordingly shareholder approval is not required.
Use Of Funds
Proceeds of the Placement will be used to:
- Accelerate surface exploration activities, including geophysical survey and regional on-ground works across the full tenure of the Company’s flagship Labyrinth Gold Project in Quebec;
- Accelerate surface exploration activities, including RC drilling, at the Comet Vale gold-copper-nickel project in Western Australia;
- Complete the CAD$500,000 payment to G.E.T.T Gold Inc related to the acquisition of the Company’s Quebec projects (refer ASX Announcement 9 November 2022); and
- Working capital, including advancement of Labyrinth’s strategic opportunities as highlighted in the Company’s AGM presentation on 29 November 2022.
Labyrinth Chief Executive Matt Nixon said: “The demand for the Placement among our major shareholders reflects their strong belief in the exploration potential at the Company’s Canadian and WA operations.
“We are grateful for this support, which enables us to rapidly progress exploration at our flagship gold project in Canada and multi commodity project in WA, both enviably located in highly sought-after mining jurisdictions.
“We are confident that this work will generate strong newsflow over coming months”.
Click here for the full ASX Release
This article includes content from Labyrinth Resources, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
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31 August 2023
Labyrinth Resources
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