|  | | | |  |   Mon Jun 13, 2005
Emgold Completes Second And Final Closing On Its Cdn$9.18 Million Non-Brokered Private Placement
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| | Emgold Mining Corporation (EMR-TSX-V) ("Emgold") is pleased to announce that on June 10, 2005, it received final acceptance from the TSX Venture Exchange to close on and issue 14,880,000 Units at CDN$0.50 per Unit, pursuant to the non-brokered private placement financing, previously announced on March 31, 2005. Each Unit is comprised of one common share in the capital of Emgold and one non-transferable share purchase warrant.
On May 3, 2005, Emgold received conditional acceptance from the TSX Venture Exchange to close on and issue 3,480,000 Units of the total 18,360,000 Units subscribed for purchase pursuant to the above noted private placement. In conjunction with the May 3, 2005, first closing Emgold has now issued a total of 18,360,000 Units for gross proceeds of CDN$9,180,000.
Each share purchase warrant issued on May 3, 2005, entitles the holder to purchase one additional common share of the Company at an exercise price of CDN$0.70 per share up to and including May 3, 2007. Each share purchase warrant issued on June 10, 2005, entitles the holder to purchase one additional common share of the Company at an exercise price of CDN$0.70 per share up to and including June 10, 2007.
14,880,000 of the total Units subscribed for were purchased by Galaxy Fund, Inc. ("Galaxy"), a well-established mutual fund based in Road Town, British Virgin Islands. Emgold welcomes its participation in the private placement as a significant vote of confidence in its Idaho-Maryland Project and the business plan associated with its development. On issuance of the shares subscribed for, Galaxy now holds approximately 23% of the issued and outstanding voting shares of Emgold, and if all of the warrants included in the private placement are exercised, this percentage could increase to approximately 36%. Under the rules and policies of the TSX Venture Exchange, this shareholding constitutes Galaxy a "control person" of Emgold, and accordingly Emgold sought and received shareholder approval of the private placement to Galaxy at its annual and special general shareholders meeting held on June 8, 2005.
All shares, warrants and any shares issued upon exercise of the warrants with respect to the above May 3, 2005, and June 10, 2005, closing are subject to a hold period and may not be traded for a four month period expiring September 4, 2005 and October 11, 2005, respectively.
In consideration for introducing Emgold to purchasers for the non-brokered financing, Emgold issued cash finder's fees equal to 4% of the total gross proceeds received to UCA Ventures Ltd.
The securities offered have not been registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. This press release shall not constitute an offer of securities for sale in the United States or Canada or the solicitation of an offer to buy securities in the United States or Canada, nor shall there be any sale of the securities in any jurisdiction or state in which such offer, solicitation or sale would be unlawful.
Proceeds from the Offering will be used to fund further exploration and development of the Company's Idaho-Maryland Project in Grass Valley, California, on-going development and commercialization of the Ceramext(tm) process and for general administrative purposes. Expenses for the Idaho-Maryland Project include the activities associated with the application for a Conditional Use Permit, on-going geologic investigations and exploration, property acquisitions, mine planning and community relations activities. The further development of the Ceramext(tm) process includes research and development, operation and expansion of the pilot plant, design of a demonstration plant, marketing studies, feasibility and protection of intellectual property. Additional testing of the Ceramext(tm) process is being conducted on other feed materials for a wide range of new applications.
For more information about Emgold, the Stewart, Rozan and Jazz Properties in British Columbia, the Idaho-Maryland Project and the Ceramext(tm) Process, please visit www.emgold.com or www.sedar.com.
William J. Witte, P.Eng.
President and Chief Executive Officer
For further information please contact:
Investor Relations
Tel: (604) 687-4622 Fax: (604) 687-4212
Email: info@emgold.com
No regulatory authority has approved or disapproved the information contained in this news release. This news release includes certain statements that may be deemed "forward-looking statements". All statements in this release, other than statements of historical facts, that address future production, reserve potential, exploration drilling, exploitation activities and events or developments that the Company expects are forward-looking statements. Although the Company believes the expectations expressed in such forward looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, exploitation and exploration successes, and continued availability of capital and financing, and general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and that actual results or developments may differ materially from those projected in the forward-looking statements. For more information on the Company, Investors should review the Company's filings that are available at www.sedar.com or the Company's website at www.emgold.com. |
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| You can view the Next News Releases - 2005 item: Thu Jun 16, 2005, Emgold Reports On Annual General Meeting & Appoints New Chairman
You can view the Previous News Releases - 2005 item: Mon Jun 6, 2005, Emgold - Application Package for Idaho-Maryland Permit Deemed Complete
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