|May 15, 2007|
Energold Completes $15 Million Bought Deal Private Placement
|NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES|
VANCOUVER, BRITISH COLUMBIA--(CCNMatthews -- May 15, 2007) - Energold Drilling Corp. (the "Company") (TSX VENTURE: EGD; FRANKFURT: X9X) is pleased to announce that it has completed its previously announced private placement financing (the "Offering"). A total of 6,830,000 units (the "Units") of the Company were issued pursuant to an underwriting agreement between the Company and Clarus Securities Inc. ("Clarus") at a price of $2.20 per Unit for aggregate gross proceeds of $15,026,000, including 1,370,000 Units that were issued pursuant to the exercise in full by Clarus of an underwriter's option.
Each Unit consists of one common share (each, a "Common Share") of the Company 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. All securities issued under the Offering are subject to a four month hold period.
Clarus was paid a cash commission equal to 7.0% of the aggregate gross proceeds of the Offering. Clarus was also granted 478,100 compensation options (the "Compensation Options"), equal to 7.0% of the Units sold pursuant to the Offering. Each Compensation Option entitles Clarus to acquire one Unit at an exercise price of $2.20 during the 12 month period following the closing of the Offering.
The net proceeds of the Offering are intended to be used by the Company for working capital and general corporate purposes. The Company now has 29,805,352 shares issued and outstanding following completion of the private placement.
Energold Drilling Corp. is an environmentally and socially sensitive diamond drilling company that services the mining industry. The Company fully consolidates its wholly owned subsidiaries and the operations of its 50.01%-owned Pac Rim Drilling S.A.C. and 50%-owned subsidiary Kluane International Drilling and its affiliates. Energold also holds 6.6 million shares representing over a 16 percent interest 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.
You can view the Next News Releases item: Tue May 29, 2007, Energold Announces Record First Quarter Results
You can view the Previous News Releases item: Fri Apr 27, 2007, Energold Announces $12 Million Bought Deal Private Placement
You can return to the main News Releases page, or press the Back button on your browser.