Linear Gold Corp.
TSX : LRR

Linear Gold Corp.

February 01, 2007 15:14 ET

Linear Gold Corp. Announces $20 Million Offering

HALIFAX, NOVA SCOTIA--(CCNMatthews - Feb. 1, 2007) -

NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE U.S.

Linear Gold Corp. ("Linear Gold" or the "Company") (TSX:LRR) is pleased to announce that it has entered into an agreement with a syndicate of underwriters led by Sprott Securities Inc. and including Orion Securities Inc. and Haywood Securities Inc. pursuant to which the underwriters have agreed to purchase 4,000,000 Units, at a price of $5.00 per Unit for aggregate proceeds to Linear Gold of $20 million. The Underwriters have the option to purchase up to an additional $5 million of Units at the issue price at any time prior to the closing of the offering. Each Unit will consist of one common share and one-half of one common share purchase warrant. Each whole warrant will entitle the holder to acquire a common share at a price of $5.50 for a period of 24 months following the closing date.

The offering is scheduled to close on or about February 22, 2007 and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals including the approval of the Toronto Stock Exchange.

Net proceed from the offering will be used to advance the exploration of the Company's Ixhuatan Project and for general corporate purposes.

The securities offered have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any State in which such offer, solicitation or sale would be unlawful.

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