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Luna Gold Raises $39.35 Million in Prospectus Offering and South American Private Placement

Published: 09/30/2011

By Andre Boivin, Gillian Carter, Christopher B. Norton, Keri Wallace, Nicole Washington

Luna Gold Corp. announced, on September 29-30, 2011, the completion of a marketed Canadian public offering (the “Public Offering”) of $27 million in units and of a $12.35 million private placement of units conducted in South America (the “South American Private Placement”). Under the terms of the Public Offering, a syndicate led by National Bank Financial Inc., and including Raymond James Ltd., BMO Capital Markets, and Scotia Capital Inc., sold 51,923,077 units at a price of C$0.52 per unit by way of sort form prospectus. Each unit consist of one common share of the company plus one half of one common share purchase warrant.

Under the South American Placement, 23,749,338 Units were sold by way of private placement to South American investors on the same terms as the units sold in the Public Offering. Celfin Capital S.A. SAB acted as agent for the South American Private Placement.

Luna Gold is a mining and exploration company listed on the TSX Venture Exchange and the Bolsa de Valores de Lima with a gold mine and exploration properties in Brazil. Luna Gold intends to use the net proceeds of the financings for its Aurizona gold mine expansion scoping study, Aurizona resource definition expansion, Maranhão Greenfields discovery exploration, Cachoeira social impact study, corporate development, debt reduction and for general corporate purposes.

Cassels Brock represented Luna Gold in both transactions, with a team comprised of André Boivin (Securities and Mining), Nicole Washington (Securities and Mining), Chris Norton (Corporate Tax) and Keri Wallace with respect to the Public Offering. Blakes represented the agents in the Public Offering.

André Boivin (Securities and Mining), Jason MacIntosh (Securities and Mining) and Gillian Carter comprised the Cassels Brock team representing Luna Gold in the South American Private Placement.