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Vancouver, BC - June 25, 2008 - Durango Capital Corp. (DGO-TSX:V) (the "Company") is pleased to announce that it has closed a brokered private placement announced on May 20, 2008 with Canaccord Capital Corporation (the "Agent") consisting of 3,995,000 units (the "Units") at a price of $0.20 per Unit and 6,980,000 flow-through units ("FT Units") at a price of $0.25 per FT Unit for gross proceeds of $2,544,000 (the "Offering"). Each Unit consists of one common share and one-half of one common share purchase warrant (a "Warrant"). Each whole Warrant entitles the holder to subscribe for one additional common share at a price of $0.25 for a period of 24 months from the date of closing. Each FT Unit consists of one flow-through common share and one-half of one common share purchase warrant (a "FT Warrant"). Each whole FT Warrant entitles the holder to subscribe for one additional common share at a price of $0.30 for a period of 12 months from the date of closing.
As consideration to the Agent, the Company has paid a commission of 7.5% of the total proceeds raised upon closing and issued Agent's warrants ("Agent's Warrants") equal to 10.0% of the Units and FT Units issued pursuant to this Offering. Each Agent's Warrant will be exercisable to acquire one common share at a price of $0.25 for a period of 24 months from the date of closing. In addition, the Agent has been paid a corporate finance fee.
The securities are subject to a hold period expiring on October 26, 2008.
The net proceeds raised from the Units will be used to fund exploration of its Canadian mineral properties and general working capital. The gross proceeds raised from the FT Units will be used for expenditures which will qualify as Canadian exploration expenses, flow-through mining expenditures (as defined in the Income Tax Act) and B.C. flow-through mining expenditures.
For further information, please contact:
Durango Capital Corp.
Karl Kottmeier
President
(604) 678 8941
(604) 689 7442 (FAX)
Email: karl@krgltd.com
or
Kirk Gamley
VP Corporate Development
(604) 678 8941
Email: info@durangocapitalcorp.com Website: www.durangocapitalcorp.com
The TSX Venture Exchange has not reviewed nor does it accept responsibility for the adequacy or accuracy of this press release.
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