/NOT INTENDED FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR
DISSEMINATION IN THE UNITED STATES/
VANCOUVER, Feb. 23 /CNW/ - Luna Gold Corp. (TSXV-LGC) ("Luna" or the
"Company") is pleased to announce that the non-brokered private placement of
up to C$8 million that was announced on January 27, 2009 has been
over-subscribed and the Board has decided to increase the offering to up to
C$31.5 million, subject to the approval of the TSX Venture Exchange.
As previously announced, a finder's fee in cash equal to 6% of the gross
proceeds raised may be paid to certain parties who have introduced arm's
length investors to the Company.
The net proceeds of the private placement will be used to reinitiate the
Company's Aurizona project development and to reduce current accounts payable.
The Company had previously announced on October 31, 2008 that it was deferring
further development of its Aurizona project until market conditions improved.
Luna's CEO, Jim Bahan, comments "We are very pleased to announce the
continuance of the Aurizona project, at such a favourable time with regards to
the gold price and BRL exchange rate. The over-subscription, in continuing
difficult market conditions, is a tremendous vote of confidence in the quality
of our project, and the area potential."
The results of the Piaba Feasibility Study were announced in July, 2008.
The capital cost was estimated at US$47.5 million. That cost did not include
certain long lead items that had already been secured and announced
previously, such as the main components of the milling circuit. The exchange
rate to the US dollar used in the study was BRL1.80 throughout. Approximately
95% of the estimated remaining capital cost is in Brazilian currency. Since
that time, the exchange rate has eased to + BRL2.30, which if maintained, will
provide significant benefits to the project economics in terms of the initial
investment and subsequent operating costs. The fully permitted project is
within a designated Brazil development zone which allows for significant
income tax benefits for up to 10 years.
About Luna Gold Corp.
Luna is a mining exploration company focused on the acquisition,
exploration, and development of gold resources and advanced stage gold
exploration projects in north-eastern Brazil.
On behalf of the Board of Directors
LUNA GOLD CORP.
Marcel de Groot, Chairman
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.
This news release does not constitute an offer to sell or a solicitation
of an offer to sell any of the securities in the United States. The
securities have not been and will not be registered under the United States
Securities Act of 1933, as amended or any state securities laws and may not be
offered or sold within the United States or to U.S. persons unless registered
under the United States Securities Act of 1933 and applicable state securities
laws or an exemption from such registration is available.
Statements in this release that are forward-looking statements are
subject to various risks and uncertainties concerning the specific factors
identified in Luna Gold Corp.'s periodic filings with Canadian Securities
Regulators. These factors include the inherent risks involved in the
exploration and development of mineral properties, the uncertainties involved
in interpreting drill results and other exploration data, fluctuating metal
prices, the possibility of project cost overruns or unanticipated costs and
expenses, uncertainties relating to the availability and costs of financing
needed in the future. The Company undertakes no obligation to update
forward-looking information except as required by applicable law. Such
forward-looking information represents management's best judgment based on
information currently available. No forward-looking statement can be
guaranteed and actual future results may vary materially.
For further information:
For further information: Investor Relations at (604) 689-7317 or toll
free at 1-866-689-7317