Roxgold (ROG-V) June 23, '15 is pleased to announce that the International Finance Corporation ("IFC") has proposed to make an investment of $18.4 million in the Company by means of a non-brokered private placement.
The private placement is expected to consist of 25,783,352 units (the "Units") at a price of $0.7136 per Unit, for gross proceeds of $18.4 million. Each Unit will consist of one common share and one-half of one common share purchase warrant. Each full warrant will be exercisable for one additional common share of the Company, at a conversion price equal to $0.90 per share, for a period of two years following the date of issuance of the Units. All common shares that comprise the Units and any common shares issued on exercise of the warrants will be subject to a four month hold period from the date of issuance of the Units. Upon closing of the private placement, IFC will hold approximately 8.2% of the issued and outstanding common shares of the Company on an undiluted basis.
"We are very pleased to announce this proposed investment by the IFC" said John Dorward, Roxgold's President & CEO. "The IFC is a well-regarded investor known for conducting detailed due diligence on the technical, social and environmental aspects of development projects throughout the world and we look forward to continuing to benefit from its experience and resources."
No finders' fees or commissions will be payable in connection with the private placement. The net proceeds of the offering will be used to partially fund the development and exploration of the Company's Yaramoko Gold Project in Burkina Faso, West Africa, and for general corporate purposes.
Closing of the private placement is subject to negotiation and execution of a subscription agreement and certain other conditions, including, among other things, receipt of approval by the TSX Venture Exchange, approval of IFC's board of directors and approval of the Company's board of directors. There are no assurances that any agreement will be signed or that the proposed private placement will be completed. The subscription agreement for the private placement will contain certain rights in favour of IFC, including, without limitation, the right to nominate one director and pre-emptive rights to maintain its percentage ownership interest so long as IFC maintains a 5% interest in the Company. Roxgold will also be subject to certain environmental and social policies and performance standards.
About Roxgold
Roxgold is a gold exploration and development company with its key asset, the high grade Yaramoko Gold Project, located in the Houndé greenstone region of Burkina Faso, West Africa. The Company is currently advancing Yaramoko's 55 Zone through construction and expects to commence production in the second quarter of 2016. Roxgold trades on the TSX Venture Exchange under the symbol ROG.
About IFC
IFC, a member of the World Bank Group, is the largest global development institution focused exclusively on the private sector. Working with private enterprises in about 100 countries, IFC uses its capital, expertise, and influence to help eliminate extreme poverty and boost shared prosperity. In FY14, IFC provided more than $22 billion in financing to improve lives in developing countries and tackle the most urgent challenges of development. For more information, visit www.ifc.org.
FOR MORE INFORMATION:
John Dorward
President & CEO
416-203-6401
info@roxgold.com
Roxgold Inc.
360 Bay Street, Suite 500, Toronto, Ontario, Canada, M5H 2V6 |
