Linear Gold Corp.
TSX : LRR

Linear Gold Corp.

March 20, 2009 14:21 ET

Linear Gold Corp. Announces Completion of $5,000,000 Financing

HALIFAX, NOVA SCOTIA--(Marketwire - March 20, 2009) -

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

Linear Gold Corp. (TSX:LRR) ("Linear Gold" or the "Corporation") is pleased to announce that it has closed its previously announced non-brokered private placement with Sprott Asset Management, consisting of 4,545,455 units at a price of $1.10 per Unit. Each Unit consists of one common share and one-half warrant, with each whole warrant entitling the holder to purchase an additional common share at a price of $1.50 per share at any time prior to March 19, 2011.

The proceeds from the private placement will be used for working capital and to fund the acquisition, exploration and development of high quality gold focused assets.

Wade K. Dawe, President and Chief Executive Officer of Linear Gold Corp. states, "Linear is very well capitalized for pursuing new opportunities. Following completion of this financing, with only 32.5 million shares outstanding, Linear's debt-free balance sheet includes working capital in excess of $30.0 million and a portfolio of quality gold projects, including carried joint ventures on the Company's Ixhuatan project in Mexico and the Company's three properties in the Dominican Republic. Linear is continuing to review potential acquisitions, focusing on high quality, advanced gold exploration and development opportunities."

Linear Gold Corp. is actively exploring for gold and base metal deposits through joint ventures with Kinross Gold in Mexico and Everton Resources in the Dominican Republic.

Wade K. Dawe, President

This news release contains "forward-looking statements". Such forward-looking statements, especially those that address resource quantities, grades, and contained metals, are generally made on the basis of estimation and extrapolation from a limited number of drill holes and metallurgical studies. Where the company expresses or implies an expectation as to future events or results, such expectation or belief is expressed in good faith and is believed to have a reasonable basis for the statement. However, forward-looking statements are subject to risks and uncertainties which could cause actual results to differ significantly from future results expressed or implied. These risks include, but are not limited to, metal price volatility, political and operational risks in the countries where we operate, and a degree of uncertainty in connection with evaluating a deposit until the deposit has been extensively drilled on closely spaced centres.

The TSX Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

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