Emgold
Mining Corporation (EMR
- TSX Venture) (the Company or Emgold) is pleased to announce that it has
entered into an agreement with M Partners Inc. (M Partners or the Agent),
to act as its exclusive lead agent in connection with a brokered private
placement offering (the Offering) on a best efforts basis to raise gross
proceeds of up to $10,000,000 through the offer and sale of units of the
Company.
The Company
will issue up to 50 million units (the Units) at a price of $0.20
per Unit. Each Unit will comprise one
common share and one share purchase warrant.
Each warrant will entitle the holder to purchase one additional common
share for a period of 24 months from closing at an exercise of $0.35 per
share.
The Agent will
receive a cash fee equal to 8% of the aggregate gross proceeds of the
Offering and compensation warrants exercisable to acquire that number of
units that is equal to 8% of the total number of units sold in the Offering,
at an exercise price of $0.20 per unit for a period of 18 months from
closing.
All securities
issued or issuable in connection with the Offering will be subject to a hold
period and may not be traded for four months plus one day from the date of
closing.
The securities offered have not been registered under the United
States Securities Act of 1933, as amended, and may not be offered or sold in
the United States absent registration or an available exemption from the
registration requirements. This press
release shall not constitute an offer to sell or the solicitation of an offer
to buy nor shall there be any sale of the securities in any State in which
such offer, solicitation or sale would be unlawful.
The proceeds
of the Offering will be used to complete permitting on the Companys
Idaho-Maryland gold project, basic engineering of long lead items for the
mine in anticipation of receipt of the permit and for general corporate
purposes.
The Company
has been working on permitting the Idaho-Maryland Mine in Grass Valley,
California. The Idaho-Maryland
project is entering the final stages of the permitting process and will
require significant expenditures on third party consultants to complete the
Environmental Impact Report and associated studies and applications to the
City of Grass Valley as Lead Agency. In addition the Company is initiating
design and engineering in preparation for dewatering the Idaho Maryland gold
mine, the design of the decline, the head frame and hoist house for the New
Brunswick shaft, associated underground development and infrastructure
services and facilities. The intention is to have significant design and
costing work completed by the anticipated grant of permit date so that
initial mine development work can commence soon thereafter.
For more
information about Emgold, the Idaho-Maryland Project in Grass Valley, the
Stewart, Rozan and Jazz Properties in British Columbia, please visit www.emgold.com or www.sedar.com.
On
behalf of the Board of Directors,
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