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Re: News Release - Friday, April 27, 2007
Energold Announces $12 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 - April 27, 2007) - Energold
Drilling Corp. ("the Company") (TSX VENTURE:EGD; FRANKFURT:X9X) is
pleased to announce that it has entered into an agreement with Clarus
Securities Inc. (the "Underwriter") pursuant to which the Company has
agreed to issue and sell by way of an underwritten private placement,
an aggregate of 5,460,000 units of the Company (each, a "Unit") at a
price of $2.20 per Unit, resulting in gross proceeds of $12,012,000
(the "Offering").
Each Unit shall consist of one common share of the Company (each, a
"Common Share") 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.
The Underwriter will have the option to increase the size of the
Offering by an additional 1,370,000 Units, which option may be
exercised by the Underwriter, upon written notice to the Company, at
any time up to one business day prior to the closing of the Offering.
The Underwriter will be paid a cash commission of 7% of gross proceeds
on closing of the Offering and in addition will be granted a number of
compensation options (the "Compensation Options") equal to 7% of the
total number of Units sold pursuant to the Offering. Each Compensation
Option will entitle the holder thereof to acquire one Unit, for a
period of 12 months following the closing of the Offering, at an
exercise price equal to the greater of: (i) $2.20; and (ii) the lowest
exercise price permitted by the TSX Venture Exchange.
This private placement financing is subject to the receipt of all
necessary regulatory approvals, including the approval of TSX Venture
Exchange. The Units will be offered in certain provinces of Canada by
way of private placement pursuant to applicable prospectus exemptions.
Closing of the offering is expected to occur on or about May 15, 2007.
The net proceeds of the offering are intended to be used by the Company
for working capital and general corporate purposes.
Energold Drilling Corp. is an environmentally and socially sensitive
diamond drilling company that services the mining industry. The
Company fully consolidates the operations of its 50.01%-owned Pac Rim
Drilling S.A.C., 50%-owned subsidiary Kluane International Drilling and
its affiliates. Energold also holds 6.6 million shares 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
Message sent on Fri Apr 27, 2007 at 9:31:50 AM Pacific Time
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