$23 million bought deal Energold Drilling Corp. (TSX VENTURE:EGD) ("Energold ") is pleased to announce that it has entered into an agreement pursuant to which a syndicate of underwriters led by TD Securities Inc. (the "Underwriters") has offered to purchase, on a bought deal private placement basis, 3,900,000 common shares (the "Shares") of Energold at a price of $5.20 per Share for gross proceeds of $20,280,000 (the "Offering"). Energold has also granted the Underwriters an option to purchase up to an additional 585,000 Shares at the same price, which is exercisable by the Underwriters at any time up to 2 business days prior to closing. If this option is fully exercised, additional gross proceeds will be $3,042,000 for total gross proceeds of $23,322,000.
The net proceeds from the Offering will be used for the construction and development of new rigs and for working capital purposes.
The Offering is scheduled to close on or about March 21, 2012 and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals including the approval of the TSX Venture Exchange. The securities to be issued under the Offering will be subject to a four month hold period in accordance with applicable Canadian securities laws.
In consideration for their services, the Underwriters will receive a cash commission of 6% of the gross proceeds of the Offering and non-transferable common share purchase warrants equal to 6% of the Shares issued pursuant to the Offering.