Linear Gold Corp.
TSX : LRR

Linear Gold Corp.

November 19, 2009 08:41 ET

Linear Gold Corp. Announces Completion of Equity Offering

TORONTO, ONTARIO--(Marketwire - Nov. 19, 2009) -

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

Linear Gold Corp. (TSX:LRR) (the "Company") has today completed a previously announced public offering of 10,407,500 Units at a price of C$2.10 per Unit and 520,000 flow-through Common Shares at a price of C$2.40 per share to raise gross proceeds of C$23,103,750 (the "Offering"). The Offering was marketed by a syndicate of agents led by Cormark Securities Inc. and including Haywood Securities Inc., Jennings Capital Inc. and Toll Cross Securities Inc. and includes 1,357,500 Units issued pursuant to the full exercise of the over-allotment option. Each Unit consists of one common share of the Company (a "Common Share") and one-half of one common share purchase warrant (each whole common share purchase warrant, a "Warrant"). Each Warrant will entitle the holder to acquire one additional Common Share at an exercise price of $3.00 per share for a period of five years following the closing of the Offering.

The Company intends to use the net proceeds of the Offering for the exploration, development and construction of its Goldfields Development Project and for general working capital purposes.

Following completion of the Offering, Linear is ideally positioned to advance its 100% owned Goldfields Project, located 25 kilometres from Uranium City, Saskatchewan, to production. Linear boasts a debt free balance sheet with over $42 million in cash and 44.2 million shares outstanding. As reported in a press release dated September 29, 2009, a recently completed feasibility study on the Goldfields Project, provides Proven and Probable Reserves of 1,030,400 ounces of gold with initial gold production of 70,000 ounces to 90,000 ounces per year from the Box Mine, at an average operating cost of US$375 per ounce, providing Linear's shareholders with tremendous leverage to gold prices.

Certain statements contained in this news release constitute forward-looking statements. Such forward-looking statements involve a number of known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company's plans to differ materially from any future results, performance or achievements expressed or implied by such forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date the statements were made, and readers are advised to consider such forward-looking statements in light of the risks set forth in the Company's filings available at www.sedar.com.

This press release shall not constitute an offer to sell or a solicitation of an offer to buy any securities in the United States. The securities have not been registered under the U.S. Securities Act of 1933 any may not be offered or sold in the United States absent registration or an exemption from the registration requirements of the U.S. Securities Act of 1933.

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