Linear Gold Corp.
TSX : LRR

Linear Gold Corp.

November 04, 2009 15:28 ET

Linear Gold Corp. Announces Equity Offering

TORONTO, ONTARIO--(Marketwire - Nov. 4, 2009) -

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

Linear Gold Corp. (TSX:LRR) (the "Company") announced today that it has filed a preliminary short form prospectus in connection with an overnight marketed public offering (the "Offering") of units ("Units") and flow-through common shares. Each Unit will consist 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") at an expected exercise price of $3.00 per Warrant. Each Warrant will entitle the holder to acquire one additional Common Share for a period of five years following the closing of the Offering. In the event that, at any time, the volume weighted average price of the Common Shares on the Toronto Stock Exchange is greater than $3.75 per share for 20 consecutive trading days following the closing of the Offering, the Company may accelerate the expiry of the Warrants to a date that is 30 days after written notice is given by the Corporation to the Warrantholders. The Offering will be conducted through a syndicate of agents ("Agents") led by Cormark Securities Inc. In addition, the Company has granted the Agents an over-allotment option to purchase up to that number of additional Units and/or half-Warrants equal to up to 15% of the Units/half-Warrants sold pursuant to the Offering, exercisable at any time up to 30 days from the closing of the Offering. The Offering is subject to certain conditions, including regulatory and TSX approval.

Final terms of the Offering and pricing of the Units and flow-through shares will be determined in the context of the market. The Company intends to use the net proceeds for the exploration, development and construction of its Goldfields Development Project and for general working capital purposes.

The Offering is expected to close on or about November 19, 2009.

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.

Contact Information

  • Linear Gold Corp.
    Wade K. Dawe
    President & Chief Executive Officer
    (902) 422-1421
    Website: www.lineargoldcorp.com