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Labrador Gold Corp ( (TSE:LAB) ) has provided an update.
Labrador Gold Corp has invested just over $1 million to acquire 16,666,667 subscription receipts of Northern Shield Resources Inc. at $0.06 each, in a deal that could give LabGold roughly an 11% stake in Northern Shield on a non-diluted basis and nearly 20% on a partially diluted basis once warrants are exercised. The funds are being held in escrow pending shareholder and regulatory approval of LabGold’s proposed change of business from a pure exploration company to an exploration and investment issuer, a move that would allow it to continue field work while building a portfolio of resource-sector equity holdings. The investment grants LabGold pre-emptive rights to maintain at least a 10% equity position in future Northern Shield financings and the ability to appoint a technical advisor to influence exploration strategy at Northern Shield, signaling a more active, strategic investment approach that could strengthen LabGold’s position in the junior mining sector while adding another layer of potential upside for investors.
More about Labrador Gold Corp
Labrador Gold Corp is a Canadian mineral exploration company listed on the TSX Venture Exchange and OTCQB, historically focused on pure exploration for gold and other resources. The firm is now pursuing a strategic shift toward becoming an exploration and investment issuer, aiming to complement its own exploration programs with equity investments in other resource companies to diversify exposure and potentially enhance returns for shareholders.
Average Trading Volume: 169,566
Technical Sentiment Signal: Buy
Current Market Cap: C$21.25M
See more insights into LAB stock on TipRanks’ Stock Analysis page.