Lago Dourado Minerals Ltd.
TSX VENTURE : LDM

Lago Dourado Minerals Ltd.

November 16, 2010 13:49 ET

Lago Dourado Minerals Ltd. Announces the Completion of its Initial Public Offering for Gross Proceeds of $8.2 Million

TORONTO, ONTARIO--(Marketwire - Nov. 16, 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 completed its initial public offering (the "Offering") of its common shares (the "Common Shares"). Pursuant to the Offering, the Company issued 16,400,000 Common Shares at an issue price of $0.50 per Common Share (the "Issue Price") for gross proceeds to the Company of $8,200,000. The TSX Venture Exchange (the "Exchange") has approved the listing of the Common Shares of the Company, and trading of the Common Shares on the Exchange is anticipated to commence at the opening of business on Thursday, November 18, 2010. The Common Shares will trade under the symbol "LDM".

The syndicate of agents for the Offering was led by Jennings Capital Inc. and included Raymond James Ltd. (the "Agents"). In connection with the Offering, the Company paid the Agents a cash commission of $569,450 and issued to the Agents an aggregate of 1,148,000 non-transferrable compensation options, each exercisable for one Common Share at the Issue Price until November 16, 2012. The Company has also granted the Agents an over-allotment option, exercisable until December 16, 2010, to sell up to an additional 2,000,000 Common Shares at the Issue Price to cover over-allotments, if any, and for market stabilization purposes. 

Following completion of the Offering, the Company has 58,574,284 issued and outstanding Common Shares.

A copy of the Company's final prospectus for the 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", "anticipated", "will" 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