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VANCOUVER, March
19, 2014 /CNW/ - Lakeland Resources Inc. (TSXv: LK;
FSE: 6LL) (the "Company") is pleased to announce that the brokered
private placement previously announced on February 24, 2014 has been oversubscribed, and
that the Company has added a non-brokered component to the
financing.
The Company had engaged Secutor Capital
Management Corporation (the "Agent") to act as lead agent in
connection with a private placement of up to 3,000,000
flow-through units ("FT Units") at a price of $0.25 per FT Unit and up to 5,952,380
units ("Units") at $0.21 per
Unit for gross proceeds of up to $2,000,000.
The brokered placement has been amended to
5,580,000 FT Units and 5,883,795 Units for gross
proceeds of $2,630,596.95. The Company will also
close on a non-brokered private placement of 305,000 FT
Units and 589,000 Units for gross proceeds of
$199,940.
The total brokered and non-brokered financings
will provide gross proceeds of $2,830,536.95
Each FT Unit will consist of one flow-through
common share and one half of one non flow-through common share
purchase warrant in the capital of the Company. Each whole share
purchase warrant (a "Warrant") is exercisable into one
common share of the Company for a period of 12 months from closing
at a price of $0.30 per common
share.
Each Unit will consist of one common share and
one warrant. Each share purchase warrant (a "Warrant") is
exercisable into one common share of the Company for a period of 12
months from closing at a price of $0.30 per common share.
On closing the Company will grant to the Agent an
over-allotment option to increase the size of the offering by 20%
of the FT Units and Units that are purchased under the private
placement. The option is exercisable in whole or in part for a
period of 30 days from closing on the same terms as set forth above
solely to cover over-allotment.
The Company will pay to the Agent a cash
commission of 8% of the gross sales of FT Units and Units
and issue to the Agent 8% of the number of FT Units and
Units sold in Compensation Options, with each Compensation Option
being exercisable for 12 months. The Compensation options for
the FT Units are exercisable at a price of $0.25 per share and the options for Units at
$0.21 per share.
Finder's fees may also be payable on the
non-brokered portion of the financing in compliance with the TSX
Venture Exchange (Exchange) policies.
All the securities issuable will be subject to a
four-month hold period from the date of closing. The private
placement is subject to the approval of the
Exchange.
The proceeds received from the FT Units will be
used by the Company to incur qualified Canadian Exploration
Expenses and the proceeds raised by the issuance of Units will be
utilized for exploration of the Company's uranium projects in the
Athabasca Basin, corporate
development and general and administrative purposes.
About Lakeland Resources Inc.
Lakeland Resources Inc. is a pure play uranium
exploration company focused on the Athabasca Basin in Saskatchewan, Canada, home to some of the
world's largest and richest high-grade uranium deposits. 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.
"Jonathan Armes"
Jonathan Armes
President, CEO and Director
Cell: 416.708.0243
Ph: 604.681.1568
TF: 1.877.377.6222
Email: jarmes@lakelandresources.com
Web: http://www.lakelandresources.com
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 company will successfully raise
$2.8 million dollars; agents'
commissions will be payable; securities will be issuable; qualified
exploration expenditures will be incurred; any other future events
related to this proposed financing and expenditures.
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.