Firstgold Corp. Closes First Tranche of Financing
Firstgold Corp. (OTCBB: FGOC) announced today that it has
closed the first tranche of the previously announced financing of up to
approximately $10 million. The Company has completed a placement of 5,693,100
units at a price of $0.45 per unit through Kingsmill Capital Partners Inc. to
raise gross proceeds of $2,561,895. Each unit consists of one share and one
half of a share purchase warrant. Each full warrant entitles the holder to
acquire an additional share of Firstgold Corp stock at an exercise price of
$0.65 for a period of 18 months from the date of closing.
"We
are very pleased to get this investment completed. We expect the balance of the
previously announced funding to be completed at similar terms shortly. Our
advisor D&D Securities Company has advised that the offering is fully
subscribed," commented Firstgold Corp Chairman and CEO Scott Dockter.
Dockter
commented further, "The capital from this financing will advance the
Company's stated objectives of implementing an aggressive drilling program on
our Relief Canyon property and to continue forward on our plans to get Relief
Canyon in production in 2007."
Firstgold
currently leases over 40,000 acres of prime exploration and production
properties in Nevada. Additional information about Firstgold Corp. can be found
by visiting its web site at www.firstgoldcorp.com.
Safe
Harbor Statement
The
matters discussed in this release contain forward-looking statements within the
meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and
Section 27A of the Securities Act of 1933, as amended that involve risks and
uncertainties. Although Firstgold Corp. believes that the expectations reflected
in such forward-looking statements are reasonable; the forward-looking
statements are subject to risks and uncertainties that could cause actual
results to differ from those projected. Firstgold Corp. cautions investors that
any forward-looking statements made by Firstgold Corp. are not guarantees of
future performance and those actual results may differ materially from those in
the forward-looking statements. Factors that could cause actual results to
differ materially from those reflected in forward-looking statements include,
but are not limited to, risks and uncertainties regarding the actual
mineralization of Firstgold Corp.'s mining properties, the unproven nature of
and potential changes to Firstgold Corp.'s business model, the risk that the capital
and other resources that Firstgold Corp will need to exploit its business model
will not be available, and the risks discussed in Firstgold Corp's Form 10-KSB
and in Firstgold Corp.'s 10-QSBs and in Firstgold Corp.'s other filings with
the Securities and Exchange Commission.
Contact:
info@firstgoldcorp.com
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