BOXXER GOLD CORP.
TSX VENTURE : BXX

BOXXER GOLD CORP.

May 17, 2006 16:05 ET

Boxxer Announces $2,000,000 Unit Financing

CALGARY, ALBERTA--(CCNMatthews - May 17, 2006) - Boxxer Gold Corp. (TSX VENTURE:BXX) ("Boxxer" or the "Corporation") today announced its intention to raise up to $2,000,000 by way of a brokered offering of units by way of TSXV Short Form Offering Document in Alberta, British Columbia, Saskatchewan, Manitoba and Nova Scotia (the "Offering"), subject to receipt of regulatory approval. A total of up to 10,000,000 units (each a "Unit") will be offered for sale at a price of $0.20 per Unit. Each Unit will consist of one common share in the share capital of Boxxer ("Common Share") and one-half Common Share purchase warrant ("Warrant"). Each Warrant shall be exerciseable for 18 months from the date of issuance into one Common Share at a price of $0.30 per Common Share.

Union Securities Ltd. (the "Agent"), has agreed, subject to satisfactory due diligence results, to act as agent for the Offering on a best efforts basis and will receive a cash commission equal to 8% of the gross proceeds received by Boxxer. The Agent will also be paid an agency fee of $25,000 and will receive an option to purchase that number of Units equal to 10% of the Units sold exercisable at a price of $0.20 per Unit for a period of 18 months from the closing of the Offering.

Boxxer will use the proceeds of the Offering for exploration and development of its properties and for general working capital purposes. The Offering is subject to regulatory approval.

Certain directors and officers of Boxxer may subscribe to the Offering. Pursuant to the policies of the TSX Venture Exchange and Ontario Securities Commission Rule 61-501 ("Rule 61-501"), the Offering may therefore be classified as a "related party transaction." Assuming receipt of regulatory approval and the availability of applicable exemptions from the requirements of Rule 61-501, it is anticipated that Boxxer may close the Offering less than 21 days after the filing of the material change report required by Rule 61-501.

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FORWARD-LOOKING STATEMENTS: Except for statements of historical fact, all statements in this news release - including, without limitation, statements regarding production estimates and future plans and objectives of Boxxer - are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate; actual results and future events could differ materially from those anticipated in such statements.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Boxxer Gold Corp.
    Colin Christensen
    President
    (403) 410-1303
    (403) 444-9494 (FAX)
    Email: colin@boxxergold.com
    or
    Cavalcanti Hume Funfer Inc.
    Investor Relations
    Cathy Hume, CEO
    (416) 868-1079, Ext 231
    Email: cathy@chfir.com
    Website: www.chfir.com
    or
    Cavalcanti Hume Funfer Inc.
    Investor Relations
    Jeanny So, Broker Relations Specialist
    (416) 868-1079, Ext 225
    Email: jeanny@chfir.com
    Website: www.chfir.com