|December 02, 2010|
Energold Drilling Corp. Announces $15,000,000 "Bought Deal" Financing
|Energold Drilling Corp. (TSX VENTURE:EGD)(the "Company" or "Energold") announced today that it has entered into an agreement with Jennings Capital Inc. ("JCI"), which has agreed to purchase, on a bought deal private placement basis, 4,054,054 units of the Company (the "Units") at a price of $3.70 per Unit (the "Issue Price"), for aggregate gross proceeds of $15,000,000. Each Unit will consist of one common share and one half of one common share purchase warrant (the "Unit Warrant"). Each whole Unit Warrant shall be exercisable to acquire one common share of the Company at $4.50 per share until the date which is 24 months from the closing of the financing. In the event that after four months and one day after the closing of the Offering, the volume weighted average trading price of the Company's common shares on the TSX Venture Exchange, for a period of 20 consecutive trading days exceeds $5.25, the Company may, within five days after such an event, provide notice to the warrant holders of early expiry and thereafter, the Warrants will expire on the date which is 30 days after the date of the notice to the warrant holders.|
The Company has granted JCI the option to purchase additional Units to raise additional gross proceeds of up to $2,250,000, exercisable no later than 48 hours prior to the closing. JCI has the right under the agreement with the Company to invite other underwriters to participate in the offering syndicate.
Closing of the offering is anticipated to occur on or before December 23, 2010 and is subject to receipt of applicable regulatory approvals including approval of the TSX-V.
The net proceeds of the financing will be used to expand the Company's rig fleet and for general working capital purposes.
The securities have not been and will not be registered under the U.S. Securities Act of 1933 (the "1933 Act"), as amended, or under any state securities laws, and may not be offered or sold, directly or indirectly, or delivered within the United States or to, or for the account or benefit of, U.S. persons (as defined in Regulation S under the 1933 Act) absent registration or an applicable exemption from registration requirements. This news release does not constitute an offer to sell or a solicitation to buy such securities in the United States.
On behalf of the Directors of Energold Drilling Corp.,
"Frederick W. Davidson", President and Chief Executive Officer
For more information, please contact
Energold Drilling Corp.
You can view the Next News Releases item: Thu Dec 23, 2010, Energold Drilling Corp. Completes $17,250,000 "Bought Deal" Financing
You can view the Previous News Releases item: Mon Nov 29, 2010, Energold Announces Profitable Third Quarter, Revenues Up 155%
You can return to the main News Releases page, or press the Back button on your browser.