Labrador Gold Announces Acquisition of Subscription Receipts of Northern Shield

Core Viewpoint - Labrador Gold Corp. has acquired 16,666,667 Subscription Receipts of Northern Shield Resources Inc. for an investment of $1,000,000.02, pending shareholder and regulatory approval for a change of business model to include equity investments in other resource companies [1][2]. Investment Details - The Subscription Receipts were purchased at a price of $0.06 each, and upon meeting the Escrow Release Conditions, they will convert into Units consisting of one common share and one warrant [1][4]. - Each warrant allows the purchase of an additional common share at a price of $0.10 for 36 months from the Escrow Release Date [1]. Rights and Conditions - As long as Labrador Gold retains a 10% equity interest in Northern Shield, it will have pre-emptive rights for future financings and the right to appoint a technical advisor for exploration activities [2]. - The Units acquired will be subject to a four-month voluntary lockup agreement post-Escrow Release Date [2]. Ownership Structure - Following the financing, Labrador Gold will beneficially own approximately 10.965% of Northern Shield's issued capital on a non-diluted basis and 19.76% on a partially diluted basis, assuming all warrants are exercised [4]. Future Intentions - The company has stated that the Subscription Receipts were acquired for investment purposes, with no current intention to increase or decrease its holdings in Northern Shield, although it may adjust its ownership through various means [5]. Company Background - Labrador Gold is focused on mineral exploration, particularly in acquiring and exploring gold projects in Eastern Canada [9].