VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 8, 2011) -
NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNTIED STATES
Prodigy Gold Incorporated (News - Market indicators) (the "Company" or "Prodigy Gold") is pleased to announce that it has entered into an agreement with Macquarie Bank Ltd. (Macquarie) for a non-brokered private placement in the amount of $3,150,000.
The private placement will consist of 7,000,000 units at a price of Cdn$0.45 per unit. Each unit shall consist of one fully paid and non-assessable common share (a "Share") and one-half of one transferable common share purchase warrant (each whole warrant, a "Warrant") in the capital of Prodigy Gold. Each Warrant shall entitle Macquarie to purchase one additional Share (a "Warrant Share") of Prodigy Gold at an exercise price of Cdn$0.60 per Warrant Share for a period of 24 months from the date of issue, provided that if the daily volume weighted average price for twenty (20) consecutive days of trading of Prodigy Gold shares on the TSX Venture Exchange (or such other stock exchange on which shares of Prodigy Gold are listed) exceeds Cdn$0.75 per share, the expiry date of the Warrants may be accelerated to the day which is thirty (30) calendar days after notice of acceleration has been sent by Prodigy Gold to Macquarie. All securities issued in conjunction with the private placement will be subject to a four month hold period. The private placement is subject to acceptance of a filing to be made in respect of same by the TSX Venture Exchange.
The proceeds from the private placement will be used to fund the Company's ongoing exploration and development at the Magino mine project and general corporate purposes.
This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws, or unless an exemption from such registration is available.
About Prodigy Gold: Prodigy Gold Incorporated (News - Market indicators) is currently evaluating the Magino mine project in Ontario as an open-pit mining opportunity with the potential for deeper, higher grade gold production. The Magino mine project contains Indicated gold resources of 1,924,200 ounces grading 1.16 gpt gold (51.6M tonnes), and 587,100 ounces of Inferred gold resources grading 1.04 gpt gold (18.3M tonnes) (please see Prodigy press release dated February 28, 2011). The Company is producing a Preliminary Economic Analysis (PEA), establishing the economic parameters of an open pit mining operation at Magino. The PEA is expected to lead to a full feasibility study, projected for early 2012. Bringing the Magino Mine project through the feasibility process and towards production, coupled with the exploration potential of our Beardmore-Geraldton exploration properties, are the catalysts to growing Prodigy Gold, building substantial value for Prodigy shareholders: Today's Discovery, Tomorrow's Future.
All scientific and technical information in this news release has been reviewed and approved by Tom Pollock, P. Geo., Prodigy Gold's Vice President of Exploration, who is a qualified person under the definitions established by National Instrument 43-101. Prodigy Gold QA/QC procedures are as follows: Prodigy Gold drill cores are split down the center with a typical table feed circular rock saw or are split with a hydraulic slitting device. Sample intervals are selected according to geologic contacts, visible mineralization, and alteration, placed into sample bags and shipped to the assay lab where they are quantitatively analyzed for select elements. Drill cores are boxed, covered, and sealed at the drill rig and moved to the Prodigy Gold logging and sample preparation facilities by Prodigy Gold personnel. Prodigy Gold angle core holes are directed perpendicular to the mapped dip of the vein therefore reported drill hole intercepts approximate true thickness of the vein. All Prodigy Gold samples are currently being assayed by Chemex ALS, 2090 Riverside Dr, Timmins, ON P4R 0A2. Blank and standard samples are routinely submitted with all sample batches sent to the lab for assay. Samples are routinely sent to other labs for additional checks.
On behalf of the Board of Directors
Brian J. Maher, President and Chief Executive Officer
This news release includes certain forward-looking statements or information. All statements other than statements of historical fact included in this release, including, without limitation, statements relating to the potential mineralization and geological merits of the Magino mine property and other future plans, objectives or expectations of Prodigy Gold Incorporated (the "Company") are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company's plans or expectations include risks relating to the actual results of current exploration activities, fluctuating gold prices, possibility of equipment breakdowns and delays, exploration cost overruns, availability of capital and financing, general economic, market or business conditions, regulatory changes, timeliness of government or regulatory approvals and other risks detailed herein and from time to time in the filings made by the Company with securities regulators. The Company expressly disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise except as otherwise required by applicable securities legislation.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.