Neither TSX Venture Exchange nor its Regulation Services Provider (as defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
HALIFAX, NOVA SCOTIA--(Marketwire - June 8, 2011) -
NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE U.S.
Frontline Gold Corporation (News - Market indicators) (the "Company") is pleased to announce the closing of the first tranche of its previously disclosed private placement (the "Offering") of units ("Units") at a price of $0.15 per Unit. A total of 4,419,935 Units were sold on a non-brokered basis under the first tranche of the Offering for aggregate gross proceeds of approximately $660,000. Certain directors and members of the Company's management participated in the first tranche of the Offering.
Each Unit is comprised of one common share of the Company and one common share purchase warrant (a "Warrant"). Each Warrant entitles the holder thereof to acquire one common share of the Company at a price of $0.20 per common share until December 8, 2012.
In connection with the first tranche of the Offering, the Company paid finder's fees of $20,334 and issued an aggregate of 135,562 non-transferable finder's warrants exercisable until December 8, 2012 at an exercise price of $0.15 per common share.
All securities issued in connection with the Offering are subject to a hold period expiring on October 9, 2011.
The net proceeds from the Offering will be used to advance the exploration of the Company's mineral properties, for working capital purposes and for general corporate purposes. A second tranche of the Offering is expected to close prior to July 8, 2011. The Offering is subject to the final approval of the TSX Venture Exchange.
About Frontline Gold Corporation
Frontline Gold Corp. (News - Market indicators) is a Canadian junior mineral exploration company with an experienced discovery team and a proven record of accomplishment. The Company's flagship Niaouleni gold project lies in the heart of Mali South in West Africa's prolific gold belt. Frontline is currently developing its gold projects in the Izmir province of Western Turkey, which consist of the Menderes, Odemis, Ordu and Kure properties. Ongoing Canadian exploration includes the Red Lake (gold) and Stewart (gold-copper-polymetallic) 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.
Walter Henry, President & CEO
FRONTLINE GOLD CORP.