🕐22.06.11 - 18:27 Uhr
ENERGOLD TO RAISE UP TO $10 MILLION THROUGH A CONVERTIBLE DEBENTURE
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Re: News Release - Wednesday, June 22, 2011
Energold to Raise up to $10 Million Through a Convertible
Debenture
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Energold Drilling Corp.
(the "Company", "Energold", or "the Energold
Group") announced today that it has entered into an agreement with a
group of private Canadian investors ("PCI") that have agreed to fund by
way of a Convertible Debenture ("CD") aggregate gross proceeds of up to
$10,000,000 for a term of three years.
The CD will bear interest at a
rate 10% calculated and compounded annually, payable quarterly.
The CD
shall be convertible into common shares of Energold at a conversion
price of $5.25 per share.
.
At any time after the first anniversary date following closing, the
Borrower may prepay the CD, in whole or in part, including all
outstanding interest cumulated to the date of prepayment, and a payment
of 1.5% of the amount to be prepaid, subject to ninety (90) days
written notice.
Any such prepayment shall permanently reduce the CD and
may not be re-borrowed.
A general security agreement on all the assets of the Borrower and a
specific security agreement on (i) all right, title and interest in the
intellectual property of the Borrower; (ii) Accounts Receivable
outstanding; and (iii) 2 million of the common shares of IMPACT Silver
Corp.
("TSX-V"IPT") owned by Energold shall be held by the Lender.
The net proceeds of the CD will be used to provide interim funding of
the Borrowers ongoing business operations, in particular for the
funding of acquisitions and capital commitments related to the
expansion of the Borrowers core mineral drilling services business.
Closing of the offering is anticipated to occur on or before July 1,
2011 and is subject to receipt of applicable regulatory approvals,
including approval of the TSX-V.
The securities have not been and will not be registered under the U.S.
Securities Act of 1933 (the "1933 Act"), as amended, or under any state
securities laws, and may not be offered or sold, directly or
indirectly, or delivered within the United States or to, or for the
account or benefit of, U.S.
persons (as defined in Regulation S under
the 1933 Act), absent registration or an applicable exemption from
registration requirements.
This news release does not constitute an
offer to sell or a solicitation to buy such securities in the United
States.
The Company will be reviewing all current events via Conference Call at
04:15 pm ET, 1:15 pm PT, Wednesday June 22nd.
The dial-in numbers are
1-866-782-8903 or 647-426-1845.
Management will be discussing the
Companys strategic acquisition and Convertible Debenture, ending with
a question-and-answer period.
Investors are encouraged to forward any
questions they may have to .
The recorded conference
call can be accessed at our website on June 22, 2011:
http://www.energold.com/s/Events.asp
Energold Drilling Corp.
is an environmentally and socially-sensitive
diamond drilling company that services the international mining
industry.
Energold holds 7 million shares of IMPACT Silver Corp.
On behalf of the Directors of Energold Drilling Corp.
"Frederick W.
Davidson"
President, CEO
For further information, please contact:
Sunny Pannu - Investor Relations
(604) 681 9501 or via email at
The TSX Venture Exchange does not accept responsibility for the
adequacy or accuracy of this news release.
Some statements in this news
release contain forward-looking information.
These statements include,
but are not limited to, statements with respect to proposed activities,
work programs and future expenditures.
These statements address future
events and conditions and, as such, involve known and unknown risks,
uncertainties and other factors which may cause the actual results,
performance or achievements to be materially different from any future
results, performance or achievements expressed or implied by the
statements.
Such factors include, among others, the effects of general
economic conditions, a reduction in the demand for the Companys
drilling services, the price of commodities, changing foreign exchange
rates, actions by government authorities, the failure to find
economically viable acquisition targets, title matters, environmental
matters, reliance on key personnel, the ability for operational and
other reasons to complete proposed activities and work programs, the
need for additional financing and the timing and amount of
expenditures.
Energold Drilling Corp.
does not assume the obligation to
update any forward-looking statement.
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Copyright (c) 2011 ENERGOLD DRILLING CORP.
(EGD) All rights reserved.
For more information visit our website at http://www.energold.com/ or
send mailto:
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