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VANCOUVER, March 20,
2014 /CNW/ - Lakeland Resources Inc. (TSXv: LK; FSE:
6LL) (the "Company") is pleased to announce that it has closed a
brokered and non-brokered private placement for total gross
proceeds of $2,830,536.
Secutor Capital Management Corporation (the
"Agent") was lead agent in connection with the private placement of
5,580,000 Flow-Through Units ("FT Units") and 6,147,795 ordinary
Units ("Units") for gross proceeds of $2,686,036. (the "Brokered Private
Placement").
In addition, the Company closed a non-brokered
private placement of 305,000 FT Units and 325,000 Units for gross
proceeds of $144,500.
Each FT Unit consists 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 consists of one common share and one
Warrant.
The Company has granted 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 has paid to the Agent a cash
commission of 8% of the gross sales of FT Units and Units issued
under the Brokered Private Placement and issued to the Agent
compensation options equal to 8% of the number of FT Units and
Units sold under the Brokered Private Placement, with each
compensation option being exercisable for 12 months. The
compensation options issued in respect of the FT Units are
exercisable at $0.25 per share and
those in respect of the Units are exercisable at $0.21 per share.
Finder's fees were paid on the non-brokered
portion of the financing in compliance with the TSX Venture
Exchange policies.
All the securities issuable will be subject to a
four-month hold period from the date of closing.
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 for example include the use of proceeds.
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.