ValGold Resources Ltd. (VAL-TSX-V) ("ValGold" or the "Company") is pleased to announce that it has completed it s previously announced non-brokered private placement. A total of 7,248,000 units (the "Units") were sold at a price of $0.10 per Unit, for gross proceeds of $724,800. Each Unit is comprised of one common share of ValGold and one non-transferable share purchase warrant (the "Warrant"). Each Warrant entitles the holder to purchase one additional common share of ValGold for a period of 24 months following the issue date of the warrant at an exercise price of $0.20 per share. The financing was closed in two tranches on July 4th and July 24th 2008. Warrants issued pursuant to the July 4th tranche closing are exercisable until July 4, 2010. Warrants issued pursuant to the July 24th tranche closing are exercisable until July 24, 2010.
ValGold issued finders' fees comprising 7% cash and non-transferable warrants (the "Finder's Warrants") equal to 8% of the total number of Units sold in the offering to arms-length subscribers arranged by eligible finders. Each Finder's Warrant entitles the finder, upon exercise, to purchase one additional common share of the Company (a "Finder's Warrant Share") for a period of 24 months from the issuance of the Finder's Warrant at a price of $0.20 per Finder's Warrant Share. A total of 24,000 Finder's Warrants were issued at the July 4, 2008, tranche closing and 20,000 Finder's Warrants were issued at the July 24, 2008, tranche closing. These Finder's Warrants are exercisable until July 4, 2010, and July 24, 2010, respectively.
All shares, warrants and any shares issued upon exercise of warrants and Finder's Warrants with respect to the above private placements are subject to a hold period and may not be traded for four months plus one day, being November 5, 2008, in regards to such securities issued pursuant to the July 4, 2008, tranche closing, and November 25, 2008, in regards to the securities issued pursuant to the July 24, 2008, tranche closing.
Proceeds from the non-brokered private placement will be used to advance the exploration programs of the Company's optioned mineral properties in Guyana, and for general working capital.
For more information on ValGold and its portfolio of international projects, visit our website at on ValGold and its portfolio of international projects, visit our website at
www.valgold.com.