High Desert Gold Corporation
TSX : HDG
TSX : HDG.W

High Desert Gold Corporation

October 17, 2007 11:23 ET

High Desert Gold Corporation Closes Initial Public Offering and Commences Trading on The Toronto Stock Exchange

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 17, 2007) -

NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES

High Desert Gold Corporation ("HDG" or the "Company")(TSX:HDG)(TSX:HDG.W) is pleased to announce that it has successfully completed its initial public offering of 30,000,000 units at $0.50 per unit for total gross proceeds of $15,000,000. Each unit consists of one common share of the Company and one half of one common share purchase warrant. Each whole warrant entitles the holder to purchase one common share of the Company at a price of $0.65 until October 17, 2009. The Units were also offered in the United States on a private placement basis. The common shares and warrants began trading today on the Toronto Stock Exchange under the symbols "HDG" and "HDG.W", respectively.

MGI Securities Inc. acted as lead agent of the offering along with Canaccord Capital Corporation. The Company has also granted the agents an option (exercisable within 30 days of closing) to purchase up to an additional 4,500,000 Units at $0.50 per Unit for additional gross proceeds of $2,250,000.

The Company is a mineral exploration company that acquires and explores mineral properties, primarily gold, copper and silver, in North America. The three major properties held by HDG are the flagship Canasta Dorada gold property in Sonora, Mexico, the Gold Lake porphyry copper-gold-molybdenum property in New Mexico and the Monitor copper-silver property in Arizona.

The funds raised through the IPO primarily will be used to aggressively drill and explore the Canasta Dorada flagship gold property and the Gold Lake property and to continue the exploration at the Monitor property. At Canasta Dorada the planned exploration includes a substantial program of drilling, tunneling and detailed metallurgical testing.

These 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 the securities laws of any state of the United States and these securities may not be offered or sold, directly or indirectly, within the United States or to or for the account or benefit of a U.S. person (as defined in Regulation S under the U.S. Securities Act) without registration under the U.S. Securities Act and any applicable state securities laws unless an exemption from registration is available. This news release is not an offer to sell or the solicitation of an offer to buy the securities in any jurisdiction.

Certain statements contained herein constitute "forward-looking statements". These forward-looking statements are based on current expectations. The nature, timing and extent of the exploration programs may materially change from current intentions for a number of reasons. Additionally, "forward looking statements" look into the future and provide an opinion as to the effect of certain events and trends on the business. Forward-looking statements may include words such as "plans," "intends," "anticipates," "should," "estimates," "expects," "believes," "indicates," "targeting," "suggests," "potential" "interpretation" and similar expressions. These forward-looking statements, including statements regarding the Company's beliefs in the potential mineralization, are based on current expectations and entail various risks and uncertainties. Actual results may materially differ from expectations as more information regarding the property is gathered or if known and unknown risks or uncertainties affect our business, or if our estimates or assumptions prove inaccurate. The Company assumes no obligation to update or revise any forward-looking statement, whether as a result of new information, future events or any other reason.

Contact Information

  • High Desert Gold Corporation
    Richard Doran
    Executive Vice President, Investor Relations
    (303) 584-0606
    (303) 758-2063 (FAX)
    Email: rdoran@highdesertgoldcorp.com