$20 Million Bought Deal Financing
Energold Drilling Corp. ("Energold")
is pleased to announce that it has completed its previously announced bought
deal private placement financing (the "Offering"). A total of
3,900,000 common shares (the "Shares") of Energold
were issued at a price of $5.20 per Share for aggregate gross proceeds of
$20,280,000 pursuant to an underwriting agreement between Energold
and a syndicate of underwriters led by TD Securities Inc., and included
Jennings Capital Inc. and Beacon Securities Limited (collectively, the "Underwriters").
In consideration for their services, the Underwriters were paid a cash
commission of 6% of the gross proceeds of the Offering and non-transferable
common share purchase warrants (each, a "Compensation Warrant")
equal to 6% of the Shares issued pursuant to the Offering. Each Compensation
Warrant entitles the holder to acquire one common share of Energold
at an exercise price of $5.20 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 July 22, 2012.
The net proceeds from the Offering will be used for the construction and
development of new rigs and for working capital purposes.
This news release does not constitute an offer to sell or a solicitation of an
offer to buy any of the securities in the United States. The securities have
not been and will not be registered under the United States Securities Act of
1933, as amended (the "U.S. Securities Act"), or any state securities
laws and may not be offered or sold directly or indirectly within the United
States or to, or for the account or benefit of, U.S. persons (as defined in
Regulation S under the U.S. Securities Act) absent registration or unless an
applicable exemption from such registration is available.
Energold Drilling Corp. is a global contract Diamond
drilling company servicing the mining and energy industry. Throughout its
operations in the developing world, Energold
emphasizes an environmentally and socially sensitive approach to drilling. Energold also holds 6.98 million shares of IMPACT Silver
On behalf of the Directors of Energold Drilling Corp.
"Frederick W. Davidson"