Evolving Gold arranges $1.47-million offering
2009-11-19 14:46 ET - News Release
Mr. Robert Barker reports:
EVOLVING GOLD CORP. ANNOUNCES NON-BROKERED PRIVATE PLACEMENT AND UPDATE ON BOUGHT DEAL PRIVATE PLACEMENT
November 19, 2009, Vancouver, British Columbia: Evolving Gold Corp. (TSX-V:EVG) (FSE:EV7) (the "Company" or "Evolving Gold") announces that further to the Company's news release of November 3, 2009 announcing a brokered financing of units on a bought deal basis (the "Brokered Offering"), the Company will, concurrently, proceed with a non-brokered private placement (the "Non-Brokered Offering", and together with the Brokered Offering, the "Offering") of up to 1,634,578 units (the "Units") at a price of $0.90 per Unit for aggregate gross proceeds to the Company of approximately $1,471,120. Each Unit will consist of one common share (a "Common Share") and one-half of one common share purchase warrant (each whole purchase warrant, a "Warrant"). Each Warrant will entitle the holder thereof to acquire one Common Share at a price of $1.25 for a period of two (2) years from closing.
The Non-Brokered Offering, in part, fulfills an obligation of the company pursuant to an option agreement with Golden Predator Mines (US) Inc. ("Golden Predator") which allows Golden Predator to participate in private placements of the Company (see press release dated August 7, 2007). Golden Predator may purchase up to 1,234,578 Units in the Non-Brokered Offering. The Company has agreed with the underwriters of the Brokered Offering, National Bank Financial Inc., Scotia Capital Inc. and PowerOne Capital Markets Limited (collectively, the "Underwriters"), that the Units to be purchased by the Underwriters under the Brokered-Offering will be adjusted to 10,711,200 Units for aggregate gross proceeds of approximately $9,640,080. The aggregate gross proceeds to the Company from the Offering of up to 12,345,778 Units will be approximately $11,111,200.
The Offering is scheduled to close on or about November 24, 2009. The Offering is subject to a number of conditions, including receipt of all necessary corporate and regulatory approvals, including the TSX Venture Exchange (the "Exchange").
The Company will pay the Underwriters a cash commission equal to 5.0% of the aggregate gross proceeds of the Brokered Offering. In addition, the Underwriters will receive that number of warrants to purchase Units that is equal to 5.0% of the number of Units sold pursuant to the Brokered Offering, exercisable at a price of $1.25 per Unit for a period of two (2) years from closing. The Company may pay a finder's fee on the Non-Brokered Offering in cash, warrants, or a combination thereof, within the maximum amount permitted by the policies of the Exchange. The proceeds of the Offering will be used for exploration of the Company's properties and for general corporate purposes, in particular for exploration, drilling, permitting, and other studies to move the Rattlesnake Hills project in Wyoming toward prefeasibility.
About Evolving Gold Corp.
Evolving Gold is focused on exploring its significant discovery at Rattlesnake Hills, Wyoming, an alkalic gold system, similar to the Cripple Creek gold district in Colorado. Evolving Gold has the option to acquire 100% of the Rattlesnake Hills project.
Evolving also has nine other gold properties in New Mexico, Nevada in the United States, and southern Nunavut in Canada. A lease agreement with subsidiaries of Newmont Mining Corporation on four prospective gold properties (North Carlin District Properties) in the prolific Carlin Trend. The Carlin property drilling described earlier in this news release is on one of these four properties. For more information about Evolving Gold please visit: www.evolvinggold.com. To receive regular updates or to receive a follow-up call from Investor Relations please sign up at: evolvinggold.com. In compliance with National Instrument 43-101, Quinton Hennigh, Ph.D., P.Geo., is the Qualified Person responsible for the accuracy of this news release.
On Behalf of the Board of Directord
EVOLVING GOLD CORP.
"Robert Barker"
Robert Barker
CEO and Director
FOR MORE INFORMATION, PLEASE CONTACT:
Evolving Gold Corp.
Robert Bick, Executive Chairman
robert@evolvinggold.com
Direct: 604 685 6375 Toll Free: 1-866-604-3864
www.EvolvingGold.com
Investor Relations:
Leo Karabelas
Tel: 905 553-7992
leo@frontlineir.com
Senergy Communications Inc.
Shiro Rae
Tel: 778 331-2095
shiro@senergyir.com
Investors can post questions and receive answers at the Evolving Gold Corp IR Hub at agoracom.com
Cautionary Statement Regarding "Forward-Looking" Information |
