Lago Dourado Minerals Ltd.
TSX VENTURE : LDM

Lago Dourado Minerals Ltd.

July 18, 2011 16:30 ET

Lago Dourado Minerals Ltd. Announces Closing of Private Placement

TORONTO, ONTARIO--(Marketwire - July 18, 2011) -

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

Lago Dourado Resources Ltd. (TSX VENTURE:LDM) ("Lago Dourado" or the "Company") is pleased to announce that it has closed its previously announced non-brokered private placement (the "Offering") pursuant to which it has issued an aggregate of 9,216,544 units ("Units") at a price of $0.55 per Unit, to raise aggregate gross proceeds of approximately $5,069,100. Each Unit consists of one common share and one-half of one share purchase warrant of Lago Dourado, each whole such share purchase warrant entitling the holder thereof to acquire one additional common share of Lago Dourado for a period of 18 months at an exercise price of $0.70 per share. All of the securities issued in the Offering are subject to a statutory hold period expiring November 19, 2011.

In connection with the Offering, Lago Dourado has paid finder's fees to certain qualified registrants assisting in the Offering, in an amount equal to 7% of the gross proceeds raised by such finders. The private placement remains subject to the final approval of the TSX Venture Exchange.

About the Company:

Lago Dourado Minerals Ltd. is a Canadian mineral exploration company focused on advancing its 100%-owned Juruena gold project in the state of Mato Grosso, Brazil. Extensive gold mineralization has been identified, and at least 0.5 million oz of gold has been mined from surface workings, over 10 square kilometres of the property, which remains largely untested. An expanded phase I drill campaign is currently underway and is expected to continue throughout 2011.

For further information about the company, please visit www.lagodourado.com or www.sedar.com.

Forward Looking Statements – Certain information set forth in this news release may contain forward-looking statements that involve substantial known and unknown risks and uncertainties. These forward-looking statements are subject to numerous risks and uncertainties, certain of which are beyond the control of Lago Dourado, including, but not limited to the impact of general economic conditions, industry conditions, volatility of commodity prices, risks associated with the uncertainty of resource and reserve estimates, currency fluctuations, dependence upon regulatory approvals, the availability of financing and exploration risk. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements.

NEITHER THE 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.

Contact Information

  • Lago Dourado Resources Ltd.
    Forbes Gemmell
    President and Chief Executive Officer
    (416) 368-5005

    Lago Dourado Resources Ltd.
    Natasha Blackburn
    Corporate Development
    (416) 368-5005
    investor@lagodourado.com
    www.lagodourado.com