News Release
EBONY GOLD & GAS INC.
4220 Evergreen Avenue
West Vancouver, British Columbia V7V lHl
Telephone: (604) 922-4236 Fax: (604) 922-2935
Investor Relations: 683-7077 or 1-800-770-8366
E-Mail: info@ebonygold.com Internet Address:
ebonygold.com
NEW RELEASE
Trading Symbol: EGG.V
Thursday, May 29, 1997
US$1.35 Million Financing
Ebony Gold & Gas Inc. ("Ebony") announces that, subject to regulatory
acceptance, it has negotiated a $1,350,000 (U.S.) convertible debenture private placement. The debentures will constitute a floating charge against the Company's assets, mature in eighteen months, bear interest at the rate of ten (10%) per annum payable semi-annually, and be convertible into common shares of the Company during the term of the debentures, at a price of $0.533 (U.S.) per share during the first 12 months, and at a price of $0.714 (U.S.) during the final six months.
The proceeds from this private placement will be used to finance the
$350,000 (U.S.) cash portion of the purchase price for the assets of a
drilling company in Tennessee, as originally announced on February 7, 1997 and amended April 25, 1997, with the balance of $1,000,000 (U.S.) to be used for working capital purposes.
The Company proposes to pay a 50,000 share finder's fee in connection with this private placement, subject to regulatory acceptance.
EBONY GOLD & GAS INC.
James M. Blair
Chairman & C.E.O.
THE VANCOUVER STOCK EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT
RESPONSIBILITY FOR THE ADEQUACY OF THIS NEWS RELEASE. |
