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LRG/TRGD JV @ El Picacho Gold Mine....
Lateegra Gold Oversubscribes Financing, Commences El Picacho Work
Thursday December 7, 3:05 am ET
VANCOUVER, BRITISH COLUMBIA--(MARKET WIRE)--Dec 7, 2006 -- Lateegra Gold Corp. (the "Company") (TSX VENTURE:LRG.V - News)(FWB: LTG) wishes to announce that it has closed its previously announced (see NR dated Nov 6, 2006) private placement of 2,880,000 units including the green shoe over allotment at a price of $1.25 per unit for total gross proceeds of $3,600,000. Each unit consists of one common share and one transferable share purchase warrant entitling the holder to purchase one additional common share for a period of two years at a price of $1.50 per share.
Canaccord Capital Corporation acted as lead agent in respect of the placement. For its efforts, Canaccord was paid a cash commission of $288,000 and was issued 288,000 non-transferable share purchase warrants, each warrant entitling it to purchase one common share of the Company for a period of two years at a price of $1.25 per share. Canaccord was also issued in payment of its corporate finance fee 50,000 units, each unit consisting of one common share and one non-transferable share purchase warrant entitling it to purchase one additional common share for a period of two years at a price of $1.50 per share.
All securities issued with respect to the placement are subject to a four month hold period expiring on March 31, 2007, in accordance with the policies of regulatory authorities.
The proceeds of the private placement will be used for exploration and development of the Company's El Picacho mine in Mexico and the El Condor property in Ecuador and for general working capital purposes.
Lateegra Gold and its partner Tara Gold Resources Corp. (Other OTC:TRGD.PK - News) (FWB: T8N) also wish to announce that a Phase 1 exploration program has commenced on the El Picacho Gold Mine in Sonora State, Mexico. The initial focus of the program will be resource delineation, the Company has completed a comprehensive data compilation of the previous work including locating and surveying all underground workings and 20 diamond drill holes. The incorporation of pre-existing mine plans including blocked out mill feed is being systematically verified for incorporation with the data compilation. Initial interpretation of the compiled data by the company suggests that there are a number of parallel structures that host the mineralization. Initial surface examination of the gold bearing structures by the company's geologists show that the mineralization extends over a strike length of 1500 meters. Of note, the compilation of the old data has shown that drilling 400 meters northwest of the main workings encountered higher gold values over considerable widths compared to the main workings previously sampled by the company's geologists.
The surveying of the old workings has aided in establishing good topographic control for further detail geochemical sampling, geological mapping and mine development. The company has also contracted a geophysical crew to conduct a magnetic and induced polarization survey over the known mineralized zones. The planned geophysics will aid in the understanding of the dimensions of the gold bearing structures. A drill plan is being designed for near term commencement, initially utilizing local drill crews and equipment, with planned expansion foreseen in January.
The company and its partner Tara Gold Resources are also refurbishing the existing mill, crushing circuit and rolling stock while shipping mined silica maintaining a silica flux supply contract to a local smelter. Its site office in neighboring Bacoachi has undergone a complete renovation with plans advancing for an upgrade to the mill facility's office, laboratory and shop complex.
The technical information in this news release has been reviewed by Jeffrey Reeder, P.Geo., a Qualified Person as defined in national policy 43-101.
ON BEHALF OF THE BOARD OF DIRECTORS
Chris Verrico, CEO and Director
GB-ND
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