|April 04, 2012|
Newton Gold Announces $1,850,000 Private Placement
|Vancouver, British Columbia (April 4, 2012) -- Mark McLeary, President and CEO, Newton Gold Corp. (TSX Venture: NWG, the "Company") is pleased to announce that the Company is proceeding with a non-brokered private placement offering of up to 3,000,000 units (each a "Unit") at a price of $0.135 per Unit, and up to 8,500,000 flow-through units (each a Flow-Through Unit") at a price of $0.17 per Flow Through Unit (the "Offering"). If fully subscribed, the Company will receive gross proceeds of $405,000 from the sale of the Units and $1,445,000 from the sale of the FT Units.|
Each Unit will consist of one common share and one common share purchase warrant (a "Unit Warrant"). Each Unit Warrant will entitle the holder to purchase one additional common share of the Company at $0.20 per share for a period of 12 months from the date of issue of the Unit Warrant.
Each Flow-Through Unit will consist of one flow-through common share and one non-flow-through common share purchase warrant (a "Warrant"). Each Warrant will entitle the holder to purchase one additional common share of the Company at $0.25 per share for a period of 12 months from the date of issue of the Warrant.
The Company intends to use the proceeds of the private placement to fund its share of a drill program at the Newton Property, which is being explored in a joint venture with Amarc Resources Ltd., and for general working capital. The Company may, in appropriate circumstances, pay a finders fee in connection with the sale of the Flow-Through Units and the Units.
Closing of the offering is subject to customary conditions including TSX Venture Exchange acceptance. Any securities issued pursuant to the Offering will be subject to a hold period of four months and one day after closing of the Offering under applicable Canadian securities laws.
The Company also provided an update on the status of its non-brokered private placement that was originally announced on February 6, 2012. The Company issued 1,260,000 Non-Flow-Through Units ("NFT Units"), receiving gross proceeds of CDN$170,100, upon closing of the first tranche on February 21, 2012, however the balance of this private placement has been terminated.
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.</em.
You can view the Next News Releases item: Wed Apr 11, 2012, Newton Gold announces first results from 12,000 m phase two drilling at Newton JV
You can view the Previous News Releases item: Wed Mar 14, 2012, Newton Gold defines 1.2 by 1.8 km gold geochemistry anomaly on Chuchi Property
You can return to the main News Releases page, or press the Back button on your browser.