Oro Gold closes $12.04-million private placement
2009-07-07 17:11 ET - News Release
Shares issued 43,007,675
OGR Close 2009-07-06 C$ 0.72
Mr. Darren Bahrey reports
ORO GOLD COMPLETES $12 MILLION PRIVATE PLACEMENT
Oro Gold Resources Ltd. has closed its private placement financing previously announced in Stockwatch on June 17, 2009. The company issued 17.2 million units of the company for gross proceeds of $12.04-million. Each unit, priced at 70 cents, consists of one common share and one-half of one common share purchase warrant. Each whole warrant entitles the holder to purchase one additional common share of the company at an exercise price of $1.00 until Jan. 7, 2011. The company intends to use the net proceeds of the offering for additional exploration and development on the company's 100-per-cent-owned Trinidad gold property in Mexico and for working capital and general corporate purposes.
Wellington West Capital Markets Inc. acted as lead underwriter and bookrunner on behalf of a syndicate of underwriters including Canaccord Capital Corporation and Blackmont Capital Inc. The company paid a cash commission to the underwriters in the amount of $772,800 and issued to the underwriters 1,104,000 warrants, each exercisable to acquire one common share of the company at a price of 70 cents until Jan. 7, 2011.
The common shares issued pursuant to the offering and the common shares issuable upon the exercise of the warrants are subject to a statutory hold period which expires on Nov. 8, 2009.
We seek Safe Harbor. |
