Energold Drilling Corp. Completes $17,250,000 "Bought
Deal" Financing
VANCOUVER, BRITISH COLUMBIA - Energold Drilling Corp.
(TSXV:EGD) (the "Company" or "Energold") is pleased to announce that it has
completed its previously announced "bought deal" private placement
financing (the "Offering"). A total of 4,662,162 units of the
Company (the "Units") at a price of $3.70 per Unit for
aggregate gross proceeds of $17,250,000 were issued pursuant to an underwriting
agreement between the Company and each of Jennings Capital Inc., as the lead
underwriter, Clarus Securities Inc., TD Securities
Inc. and Beacon Securities Limited (collectively, the "Underwriters").
Each Unit consists of one common share and one half of one common share
purchase warrant (each whole common share purchase warrant, a "Unit
Warrant"). Each Unit Warrant is exercisable to acquire one common
share of the Company at $4.50 per share until the date which is 24 months from
the date hereof.
The Underwriters were paid a cash commission equal to 6.0% of the aggregate
gross proceeds of the Offering. The Underwriters were also granted 279,729
non-transferable compensation options (the "Compensation Options"),
equal to 6.0% of the Units sold pursuant to the Offering. Each Compensation
Option entitles the holder to acquire one Unit at an exercise price of $3.70
during the 24 month period following the date hereof. All securities issued
under the Offering are subject to a four-month hold period expiring on April
24, 2011.
The net proceeds of the Offering are intended to be used for accelerating the
Company's aggressive organic growth with the purchase of new rigs for a fleet
targeted to exceed 120 rigs by the end of 2011. This growth is predicated on
dramatically increasing client demand for drilling services especially in Energold's primary industry segment. Funds are also to be
allocated to assist the Company's strategy of adding accretive acquisitions to
expand into new markets, conduct research and development and for working
capital and general corporate purposes.
Energold Drilling Corp. is an environmentally and
socially-sensitive diamond drilling company that services the international
mining industry. Energold holds 6.9 million shares of
IMPACT Silver Corp.
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 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 under the 1933 Act 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 further information, please contact:
Sunny Pannu, Investor Relations
(604) 681-9501 or via email at info@energold.com
The TSX Venture Exchange
does not accept responsibility for the adequacy or accuracy of this news
release. Some statements in this news release contain forward-looking
information. These statements include, but are not limited to, statements with
respect to proposed activities, work programs and future expenditures. These
statements address future events and conditions and, as such, involve known and
unknown risks, uncertainties and other factors which may cause the actual
results, performance or achievements to be materially different from any future
results, performance or achievements expressed or implied by the statements.
Such factors include, among others, the effects of general economic conditions,
a reduction in the demand for the Company's drilling services, the price of
commodities, changing foreign exchange rates, actions by government authorities,
the failure to find economically viable acquisition targets, title matters,
environmental matters, reliance on key personnel, the ability for operational
and other reasons to complete proposed activities and work programs, the need
for additional financing and the timing and amount of expenditures. Energold Drilling Corp. does not assume the obligation to
update any forward-looking statement.