Lago Dourado Minerals Ltd.
TSX VENTURE : LDM

Lago Dourado Minerals Ltd.

November 25, 2010 13:29 ET

Lago Dourado Minerals Ltd. Announces Closing of Over-Allotment Option for Gross Proceeds of $1 Million

TORONTO, ONTARIO--(Marketwire - Nov. 25, 2010) -

THIS PRESS RELEASE IS NOT FOR DISTRIBUTION IN THE UNITED STATES OR TO U.S. NEWS WIRE SERVICES

Lago Dourado Minerals Ltd. (TSX VENTURE:LDM) (the "Company") announces that it has sold an additional 2,000,000 common shares at an issue price of $0.50 per common share (the "Issue Price"), pursuant to the exercise in full of an over-allotment option (the "Over-Allotment Option") by Jennings Capital Inc., as lead agent, on behalf of itself and Raymond James Ltd. (collectively, the "Agents"). The Over-Allotment Option was granted to the Agents by the Company in connection with the initial public offering of its common shares that closed on November 16, 2010 (the "Offering"). The aggregate gross proceeds to the Company from the Offering and the exercise of the Over-Allotment Option are $9,200,000.

In connection with the exercise of the Over-Allotment Option, the Company paid the Agents a cash commission of $70,000 and issued to the Agents an aggregate of 140,000 non-transferrable compensation options, each exercisable for one Common Share at the Issue Price until November 25, 2012. 

Following completion of the Offering, the Company has 60,574,284 issued and outstanding Common Shares.

A copy of the Company's final prospectus for its initial public offering and material contracts are available under the Company's profile on the SEDAR website at www.sedar.com.

About the Company

Lago Dourado Minerals Ltd. is a Canadian mineral exploration company focused on advancing the Juruena Project, an extensive gold mineralization system located in the State of Mato Grosso, Brazil. The Company is currently undertaking preliminary exploration ahead of its Phase I drill campaign, which is expected to commence by the end of 2010. The Company also controls the Jauru Project, an earlier stage gold project located on a prospective belt in the south of Brazil.

This press release contains forward-looking statements, which can be identified by the use of statements that include words such as "expected" or other similar words or phrases. The Company does not intend, and does not assume any obligations, to update forward-looking statements, whether as a result of new information, future events or otherwise, unless otherwise required by applicable securities laws. Readers should not place undue reliance on forward-looking statements.

This press release does not constitute an offer to sell or a solicitation of an offer to buy any securities of the Company in any jurisdiction in which such offer, solicitation of sale would be unlawful. These securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any U.S. state securities laws and may not be offered or sold in the United States except in compliance with the registration requirements of the U.S. Securities Act and applicable U.S. state securities laws or pursuant to an exemption therefrom. Any public offering of the securities in the United States may only be made by means of a prospectus containing detailed information about the Company and its management as well as financial 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 Minerals Ltd.
    Forbes Gemmell
    President and Chief Executive Officer
    (416) 368-5005
    fgemmell@lagodourado.net