Frontline Gold Announces Closing of Private Placement
Frontline Gold Corporation
("Frontline" or the "Company") (TSX V: FGC) announces the
closing of a non-brokered private placement offering (the "Offering")
for aggregate gross proceeds of $416,750, by the issuance of: (i) 1,389,473 flow through common shares at a price of
$0.095 per flow-through common share ($132,000); and (ii) the issuance of
4,067,857 units (the "Units") at a price of $0.07 per Unit
($284,750). Each Unit is comprised of one common share and one-half of one
purchase warrant (the "Purchase Warrant"). Each full Purchase Warrant
entitles the holder to acquire one common share of the Company at a price of
$0.12 per share for 18 months from closing.
The net proceeds of the Offering will be used for exploration at the Company's
Menderes property in Western Turkey and its Poly/Stewart property in British
Columbia, and for working capital and general corporate purposes.
The Offering was made in reliance upon applicable exemptions from registration
and prospectus requirements. The closing of the private placement is subject to
the receipt of final approval of the TSX Venture Exchange. All securities
issued pursuant to the offering are subject to a hold period of four months. The
Company paid an aggregate $6,790, in addition to the issuance of 94,500 finders
warrants (the "Finders Warrants"), to eligible finders in connection
with the Offering. Each Finders Warrant entitles the finder to acquire one
common share of the Company at a price of $0.12 for a period of 18 months.
In accordance with the rules of the TSX Venture Exchange, the Company may,
before February 2, 2011, complete an additional offering of up to 7,360,714
Units and up to 715,791 flow-through common shares on the same terms as the
Offering.
About Frontline Gold Corporation
Frontline is a Canadian junior mineral exploration company with an experienced
discovery team and a proven record of accomplishment. The Company's flagship
properties include the Niaouleni gold project in the
heart of Mali South in West Africa's prolific gold belt and the Menderes gold
project in the Izmir province of Western Turkey. Ongoing Canadian exploration
includes the Poly (gold), the Stewart (gold-copper polymetallic)
and the Red Lake (gold) projects.
For further information, please visit the Company's website at www.frontlinegold.com to view the most recent corporate
presentation.
This news release contains
forward-looking statements, which address future events and conditions, which
are subject to various risks and uncertainties. The Company's actual results,
programs and financial position could differ materially from those anticipated
in such forward-looking statements as a result of numerous factors, some of
which may be beyond the Company's control. These factors include: the
availability of funds; the timing and content of work programs; results of
exploration activities and development of mineral properties, the interpretation
of drilling results and other geological data, the uncertainties of resource
and reserve estimations, receipt and security of mineral property titles;
project cost overruns or unanticipated costs and expenses, fluctuations in
metal prices; currency fluctuations; and general market and industry
conditions.
Forward-looking statements
are based on the expectations and opinions of the Company's management on the
date the statements are made. The assumptions used in the preparation of such
statements, although considered reasonable at the time of preparation, may
prove to be imprecise and, as such, undue reliance should not be placed on
forward-looking statements.