Abzu Gold Ltd.
TSX VENTURE : ABS
OTCQX : ABZUF

Abzu Gold Ltd.

August 16, 2011 08:00 ET

Abzu Gold Ltd. Closes Non-Brokered Private Placement

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 16, 2011) -

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

Abzu Gold Ltd. (the "Company") (TSX VENTURE:ABS)(OTCQX:ABZUF) is pleased to announce that it has closed its previously disclosed non-brokered private placement (the "Private Placement").

The Private Placement consisted of 5,326,499 units (the "Units") at $0.65 per Unit for gross proceeds of $3,462,224.35. Each Unit consists of one common share (a "Share") and one-half of one Share purchase warrant (a "Warrant"). Each whole Warrant entitles the holder to acquire an additional Share for a period of 12 months following the date of issuance of the Units at a price of $0.90 per Share. The Shares and Warrants issued in connection with the Private Placement have a four month hold period expiring on December 16, 2011.

A finder's fee equal to 5% of the gross proceeds raised (payable in cash or Units) has been paid to certain finders for part of the Private Placement. Additionally, certain finders have received finder's warrants equal to 5% of the number of Units purchased by subscribers introduced to the Company.

The net proceeds from the sale of the Units will be used for working capital and for general corporate purposes.

On behalf of the board of directors of ABZU GOLD LTD.

Allan Serwa, Chief Executive officer

This news release contains certain forward-looking statements, and such statements involve risks and uncertainties. The results or events predicted may differ materially from actual results or events. Any forward-looking statement speaks only as of the date of this news release. Except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results, or any other occurrence.

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 press release, which has been prepared by management.

Contact Information

  • Abzu Gold Ltd.
    Quentin Mai
    Manager, Corporate Communications
    604-638-3288
    qmai@abzugold.com