To: Andrew~ who wrote (19202 ) 6/27/2016 5:31:57 PM From: Goose94 Read Replies (1) | Respond to Lundin Gold (LUG-T) June 27, '16 announces that it has entered into an agreement with a syndicate of underwriters led by GMP Securities L.P., which have agreed to purchase, on a bought deal basis, 15,000,000 common shares of the Company at a price of C$5.50 per Share, for aggregate gross proceeds of C$82,500,000. The Company has agreed to grant the Underwriters an over-allotment option, exercisable in whole or in part, on or following the closing of the offering (subject to certain conditions discussed below) and for a period of 30 days thereafter, to purchase up to an additional 2,250,000 Shares, representing 15% of the number of Shares sold under the Offering, to cover over-allotments, if any, and for market stabilization purposes. In the event that the over-allotment option is exercised in its entirety, the aggregate gross proceeds to the Company from the offering will be C$94,875,000. Short Form Prospectus Distributions . The Shares will also be offered and sold in the United States on a private placement basis pursuant to an exemption from the registration requirements of the United States Securities Act of 1933 , as amended (the "U.S. Securities Act" ) and other jurisdictions outside of Canada on an exempt basis.Initial Closing Date "), or such other date as may be agreed by the Underwriters and the Company, acting reasonably. The closing of the second tranche, being 5,000,000 Common Shares (the "Second Closing" ) plus any Common Shares to be acquired on the exercise of the Over-Allotment Option (if any), is conditional upon the approval and registration with the Swedish Financial Supervising Authority of a prospectus (and the subsequent publication of the prospectus), regarding the listing of the Common Shares on the OMX (the "Swedish Prospectus Condition" ). The Second Closing shall occur three (3) business days following the satisfaction of the Swedish Prospectus Condition or such other date as may be agreed by the Underwriters and the Company, acting reasonably. In the event that Swedish Prospectus Condition is not met by August 8, 2016, the Underwriters shall not have any obligation to complete the Second Closing. The closings are also subject to certain other conditions including, but not limited to, the receipt of all necessary regulatory approvals including the approval of the Toronto Stock Exchange, the Nasdaq Stockholm, and the applicable securities regulatory authorities.This news release does not constitute an offer to sell or a solicitation of an offer to buy the securities described herein in the United States or in any other jurisdiction. The securities referred to in this press release have not been and will not be registered under the U.S. Securities Act and may not be offered or sold without registration under the U.S. Securities Act and all applicable state securities laws or compliance with the requirements of an exemption from such registration. About the Company: Lundin Gold Inc. owns the Fruta del Norte ("FDN") gold project located in southeast Ecuador. FDN is one of the largest and highest grade undeveloped gold projects in the world. The Company is advancing FDN to realize the significant potential of this asset. The Company believes that the value created will not only greatly benefit shareholders, but also the Government and people of Ecuador who are the Company's most important stakeholders in this project. Lundin Gold views its commitment to corporate social responsibility as a strategic advantage that enables it both to access and effectively manage business opportunities in increasingly complex environments. Lundin Gold is committed to addressing the challenge of sustainability - delivering value to its shareholders, while simultaneously providing economic and social benefits to impacted communities and minimizing its environmental footprint. info@lundingold.com www.lundingold.com
