VANCOUVER, BRITISH COLUMBIA – Nov. 11, 2014 – La Ronge Gold Corp. (“La Ronge” or the “Company”) (TSX VENTURE:LAR) is pleased to announce that it will conduct a non-brokered private placement of convertible debentures (the “Debentures”) in the principal amount of $600,000. The principal amount of the Debentures will bear interest at 15% per annum, compounded quarterly not in advance with the principal amount of the Debentures payable on the date (the “Maturity Date”) that is 18 months after the date of issue of the Debentures. Interest will accrue and be payable in full on the Maturity Date.
Subject to an early conversion (the “Early Conversion”) of the principal amount of the Debentures, on the Maturity Date, the principal amount of the Debentures will be automatically converted into units (the “Principal Units”) of the Company at a conversion price of $0.15 per Principal Unit; and, provided that the Early Conversion has not occurred, all accrued interest on the Debentures will be automatically converted into common shares (the “Interest Shares”) of the Company at a conversion price equal to the applicable market price (as determined pursuant to the policies of the Exchange) of the common shares on the Maturity Date.
Upon conversion, each Principal Unit will be comprised of a common share of the Company and a full warrant exercisable into a common share at an exercise price of $0.15 per share for a period of 18 months after the Maturity Date.
In connection with the private placement, the Company may, subject to regulatory acceptance, pay a finder’s fee to certain arm’s-length parties on the proceeds raised. It has yet to be determined if any insiders will be participating in the offering.
The securities issued will be subject to a 4 month hold period from the date of issue of, as the case may be, the Debentures, the Principal Units or the Interest Shares. The completion of the private placement and payment of any commission and fees remains subject to the receipt of all necessary approvals, including the approval of the Exchange.
La Ronge Gold Corporation is also pleased to announce that a name change for the Company to Select Sands Corporation was approved at the October 30th, 2014 Annual General Meeting. A new symbol will be issued by the exchange shortly.
About La Ronge Gold Corp.
La Ronge is actively engaged in diversifying its mining assets portfolio into sectors other than precious metals. The intent of this strategy is to identify and acquire strategic investments that have the capability to generate cash flow with low capital expenditure costs. This mining asset diversification strategy is limited geographically to Canada at the present time. La Ronge is a Vancouver-based resource growth and development company. The Company owns high-grade gold deposits in one of Canada’s emerging gold producing regions, the La Ronge Gold Belt, northern Saskatchewan. La Ronge also holds other gold projects located in Ontario and, Saskatchewan.
Neither 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 or accuracy of this Release.
This news release includes forward-looking information and statements, which may include, but are not limited to, information and statements regarding or inferring the future business, operations, financial performance, prospects and other plans, intentions, expectations, estimates, and beliefs of the Company. Information and statements which are not purely historical fact are forward-looking statements. Forward-looking information and statements involve and are subject to assumptions and known and unknown risks, uncertainties, and other factors which may cause actual events, results, performance, or achievements of the Company to be materially different from future events, results, performance, and achievements expressed or implied by forward-looking information and statements herein. Although the Company believes that any forward-looking information and statements herein are reasonable, in light of the use of assumptions and the significant risks and uncertainties inherent in such information and statements, there can be no assurance that any such forward-looking information and statements will prove to be accurate, and accordingly readers are advised to rely on their own evaluation of such risks and uncertainties and should not place undue reliance upon such forward-looking information and statements. Any forward-looking information and statements herein are made as of the date hereof, and except as required by applicable laws, the Company assumes no obligation and disclaims any intention to update or revise any forward-looking information and statements herein, or to update the reasons that actual events or results could or do differ from those projected in any forward-looking information and statements herein, whether as a result of new information, future events or results, or otherwise, except as required by applicable laws.
Rasool Mohammad, B.Sc. (Mining)
President & CEO
604 685-3765 (FAX)