VANCOUVER, BRITISH COLUMBIA – Oct. 18, 2011 – La Ronge Gold Corp. – (TSX VENTURE:LAR) (the “Company”) announces it will undertake a private placement (the “Placement”) consisting of 1,600,000 flow-through units (the “FT Units”) at a price of $0.30 per FT Unit, and 2,000,000 non flow-through units (the “NFT Units”) at a price of $0.25 per NFT Unit for total gross proceeds of $980,000.
Each FT Unit consists of one flow-through common share (the “FT Shares”) and one non flow-through share purchase warrant (the “FT Warrants”). Each FT Warrant will entitle the holder to purchase one additional non flow-through common share, exercisable at a price of $0.40 per share for a period of 24 months from the date of issue of the FT Warrant. The FT Shares will entitle the holder to receive the tax benefits applicable to flow-through shares, in accordance with provisions of the Income Tax Act (Canada).
Each NFT Unit consists of one non flow-through common share (the “NFT Shares”) and one non flow-through share purchase warrant (the “NFT Warrants”). Each NFT Warrant will entitle the holder to purchase one additional non flow-through common share, exercisable at a price of $0.40 per share for a period of 24 months from the date of issue of the NFT Warrant.
All securities issued will be subject to a four-month hold period. The offering is subject to the approval of the TSX Venture Exchange (the “TSX”). This news release does not constitute an offer to sell or a solicitation of an offer to buy any securities. A finder’s fee may be payable in accordance with the policies of the TSX. Proceeds from the flow-through portion of the Placement will be applied to the Company’s exploration activities on its recently optioned gold projects in the La Ronge gold camp and the proceeds from the non flow-through portion of the Placement will be applied to general working capital.
La Ronge Gold Corp. is a gold exploration company focusing on gold exploration projects in Saskatchewan and Ontario.
The statements made in this Press Release may contain forward-looking statements that may involve a number of risks and uncertainties. Actual events or results could differ materially from the Company’s expectations and projections.
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this news release.
La Ronge Gold Corp.
President & CEO
La Ronge Gold Corp.
(604) 685-3764 (FAX)