Linear Gold Announces $5 Million Private Placement

Subject to regulatory approval, Linear Gold will be receiving $5 million gross proceeds from a private placement with Sprott Asset Management. Linear will issue 4,545,455 units at a price of $1.10 per unit. Each unit will contain one common share and half a purchase warrant; the warrants will have an exercise price of $1.50 and life of two years. The proceeds are earmarked for "working capital and to fund the acquisition, exploration and development of high quality gold focused assets." The news release has further details, and a statement from Linear's CEO.

Linear is currently halted. It last trade before the halt went at $1.00, for a drop of a penny on the day.

The company's Google Finance web page is here.

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