|April 27, 2007|
Energold Announces $12 Million Bought Deal Private Placement
|NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES|
VANCOUVER, BRITISH COLUMBIA - (CCNMatthews - April 27, 2007) - Energold Drilling Corp. ("the Company") (TSX VENTURE:EGD; FRANKFURT:X9X) is pleased to announce that it has entered into an agreement with Clarus Securities Inc. (the "Underwriter") pursuant to which the Company has agreed to issue and sell by way of an underwritten private placement, an aggregate of 5,460,000 units of the Company (each, a "Unit") at a price of $2.20 per Unit, resulting in gross proceeds of $12,012,000 (the "Offering").
Each Unit shall consist of one common share of the Company (each, a "Common Share") and one half of one Common Share purchase warrant (each whole Common Share purchase warrant, a "Warrant"). Each Warrant will entitle the holder thereof to acquire an additional Common Share at a price of $2.85 per Common Share for a period of 12 months following the closing of the Offering.
The Underwriter will have the option to increase the size of the Offering by an additional 1,370,000 Units, which option may be exercised by the Underwriter, upon written notice to the Company, at any time up to one business day prior to the closing of the Offering.
The Underwriter will be paid a cash commission of 7% of gross proceeds on closing of the Offering and in addition will be granted a number of compensation options (the "Compensation Options") equal to 7% of the total number of Units sold pursuant to the Offering. Each Compensation Option will entitle the holder thereof to acquire one Unit, for a period of 12 months following the closing of the Offering, at an exercise price equal to the greater of: (i) $2.20; and (ii) the lowest exercise price permitted by the TSX Venture Exchange.
This private placement financing is subject to the receipt of all necessary regulatory approvals, including the approval of TSX Venture Exchange. The Units will be offered in certain provinces of Canada by way of private placement pursuant to applicable prospectus exemptions. Closing of the offering is expected to occur on or about May 15, 2007.
The net proceeds of the offering are intended to be used by the Company for working capital and general corporate purposes.
Energold Drilling Corp. is an environmentally and socially sensitive diamond drilling company that services the mining industry. The Company fully consolidates the operations of its 50.01%-owned Pac Rim Drilling S.A.C., 50%-owned subsidiary Kluane International Drilling and its affiliates. Energold also holds 6.6 million shares in silver producer IMPACT Silver Corp.
On behalf of the Directors of Energold Drilling Corp.
"Frederick W. Davidson"
For further information, please contact:
Darrell Rader - Corporate Development
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this news release.
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