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Re: News Release - Tuesday, May 15, 2007
Energold Completes $15 Million Bought Deal Private Placement
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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"
President, CEO
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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Copyright (c) 2007 ENERGOLD DRILLING CORP. (EGD) All rights reserved.
For more information visit our website at http://www.energold.com/ or
send mailto:info@energold.com
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