VANCOUVER, Sept. 3, 2013 /CNW/ - Lakeland Resources Inc. (TSXv: LK) (FSE: 6LL) (the "Company" or "Lakeland") announces the closing of the first tranche of its previously announced non-brokered private placement (see the Company's news release dated August 16, 2013) issuing 5,702,700 Units ("Units") at C$0.10 per Unit and 1,348,000 Flow-Through Units ("FT Units") at C$0.125 per FT Unit for total aggregate gross proceeds of C$738,770.
Each Unit consists of one common share of the Company and one common share purchase warrant ("Warrant"). Each Warrant entitles the holder to purchase one common share of the Company at a price of $0.15 per share for a period of 12 months following the date of issuance. Each FT Unit consists of one common share of the Company issued on a 'flow-through' basis and one Warrant.
Finder's Fees of C$25,883.90 and 250,089 Finder's Units were awarded in relation to this tranche of the financing. Each Finder's Unit consists of one common share and one share purchase warrant exercisable into one common share at $0.15 for one year from closing.
All of the securities issued under the first tranche of the offering are subject to a hold period expiring on December 31, 2013.
Two insiders of the Company, directly or indirectly subscribed for an aggregate of 100,000 FT Units and 1,000,000 Units. The participation by insiders in the offering is considered to be a "related party transaction" as defined under Multilateral Instrument 61-101 ("MI 61-101″). The transaction is exempt from the formal valuation and minority shareholder approval requirements of MI 61-101, as neither the fair market value of the securities being issued, nor the consideration being paid, exceeds 25% of Lakeland's market capitalization.
The aggregate proceeds raised under the offering will be used to conduct exploration on the Company's Athabasca uranium properties and for general working capital.
About Lakeland Resources Inc.
Lakeland Resources Inc. is a pure play uranium exploration company focused on the Athabasca Basin in Saskatchewan, Canada. The Company's common shares trade on the TSX Venture Exchange under the symbol "LK" and on the Frankfurt Stock Exchange under the symbol "6LL".
On Behalf of the Board of Directors
LAKELAND RESOURCES INC.
Neither 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.
Statements in this document which are not purely historical are forward-looking statements, including any statements regarding beliefs, plans, expectations or intentions regarding the future. Forward looking statements in this news release include that the aggregate proceeds raised under the offering will be used to conduct exploration on the Company's Athabasca uranium properties and for general working capital.
It is important to note that actual outcomes and the Company's actual results could differ materially from those in such forward-looking statements. Risks and uncertainties include economic, competitive, governmental, environmental and technological factors that may affect the Company's operations, markets, products and prices. Factors that could cause actual results to differ materially may include misinterpretation of data; that we may not be able to get equipment or labour as we need it; that we may not be able to raise sufficient funds to complete our intended exploration and development; that our applications to drill may be denied; that weather, logistical problems or hazards may prevent us from exploration; that equipment may not work as well as expected; that analysis of data may not be possible accurately and at depth; that results which we or others have found in any particular location are not necessarily indicative of larger areas of our properties; that we may not complete environmental programs in a timely manner or at all; that market prices may not justify commercial production costs; and that despite encouraging data there may be no commercially exploitable mineralization on our properties.
SOURCE: Lakeland Resources Inc.
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