|September 14, 2011|
Newton Gold Closes Second Tranche of Private Placement
|Vancouver, British Columbia (September 14, 2011) -- Mark McLeary, President and CEO, Newton Gold Corp. (TSX Venture: NWG, the "Company") reports that the Company has closed on the second tranche of the private placement announced on July 6, 2011, and has issued 880,000 Flow-Through Units ("FT Units") and 525,000 Non-Flow-Through Units ("NFT Units"). The Company has received gross proceeds of $325,000, which will be applied to qualifying exploration expenses on the Newton joint-venture.|
The Company will proceed with the sale of the balance of the 1,920,000 FT Units at a price of $0.25 per FT Unit, and 1,975,000 Non-Flow-Through Units ("NFT Units") at a Price of $0.20 per NFT Unit.
Each FT Unit consists of one "flow-through" common share and one non-flow-through warrant entitling the holder to purchase an additional common share for a period of two years at a price of $0.40 share during the first year and $0.50 per share during the second year (a "Warrant"). Each NFT Unit consists of one non-flow-through common share and one non-flow-through warrant entitling the holder to purchase an additional common share for a period of two years at a price of $0.30 share during the first year and $0.40 per share during the second year (a NFT Warrant").
The Company paid Leede Financial Markets Inc. and Wolverton Securities Ltd. an 8% finder's fee and issued 8,400 finder's warrants on a portion of the amount included in the second tranche. The terms of each finder's warrant are the same as those of the financing.
About Newton Gold Corp.
Newton Gold Corp. is a British Columbia focused exploration company with two advanced exploration projects. The Company has an experienced management team with a growth strategy to develop a diversified portfolio of mining projects that can be taken into production. The company's main objective is to add shareholder value through efficient exploration, strategic acquisitions and joint ventures, and effective marketing while maintaining a lower risk profile through project diversification and sound financial management.
ON BEHALF OF THE BOARD OF DIRECTORS
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Forward Looking and other Cautionary Information
This release includes certain statements that may be deemed "forward-looking statements". All statements in this release, other than statements of historical facts that address exploration drilling, exploitation activities and other related events or developments are forward-looking statements. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, exploration and exploitation successes, continuity of mineralization, uncertainties related to the ability to obtain necessary permits, licenses and title and delays due to third party opposition, changes in government policies regarding mining and natural resource exploration and exploitation, continued availability of capital and financing, and general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and actual results or developments may differ materially from those projected in the forward-looking statements.
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