Brigadier Gold Limited

Brigadier Gold Limited

October 12, 2010 17:22 ET

Brigadier Gold (TSX-V: BRG) Announces Closing of $2.0 Million Private Placement and Argentina Property Transaction

TORONTO, ONTARIO--(Marketwire - Oct. 12, 2010) - Further to its press release dated August 24, 2010, Brigadier Gold Limited (TSX VENTURE:BRG) is pleased to announce that it has closed a $2.0 million private placement financing (the "Private Placement"), the proceeds of which will be used to fund the first part of the exploration program for the Option (discussed below) and for general corporate purposes. The private placement consisted of the issuance of units (each, a "Unit" and collectively, the "Units") at a price of $0.15 per Unit, with each Unit consisting of one common share, and one-half of a common share purchase warrant, each whole warrant entitling the holder to purchase one common share over a one-year period at a price of $0.25 per common share. In the event that the common shares close at a price in excess of $0.70 for 20 consecutive trading days, Brigadier may reduce the exercise period to 30 days after giving notice of same.

In connection with the Private Placement, Brigadier has paid to finders (i) cash fees of between 8% and 10% on that portion of the funds raised by the respective finder, (ii) warrants to purchase shares at $0.15 for a period of 12 months following closing on that portion of the funds raised by the respective finder, and (iii) Units at $0.15 per Unit for a period of 12 months following closing on that portion of the funds raised by the respective finder.

In addition to the Private Placement, Brigadier is pleased to report that it has completed the acquisition of all of the issued and outstanding shares of 1534185 Alberta Inc. ("AlbertaCo"), in exchange for the treasury issuance of 3 million common shares of Brigadier, and the payment of $100,000 cash to the former shareholders of AlbertaCo. AlbertaCo holds an option (issued by Salta Exploraciones SA of Argentina and SESA Holdings LLC in Nevada) in a gold property known as the INCAMAYO project consisting of 3,495 hectares located in Salta province in Northwestern Argentina (the "Option").

This press release includes certain "Forward-Looking Statements." All statements, other than statements of historical fact, included herein, including without limitation, statements regarding potential mineralization and reserves, exploration results and future plans and objectives of Brigadier, are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from Brigadier's expectations are disclosed under the heading "Risk Factors" and elsewhere in Brigadier's documents filed from time-to-time with regulatory authorities. 

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

Contact Information

  • Brigadier Gold Limited
    Herb Kokotow
    President & CEO
    (416) 410-7956
    (905) 707-1520 (FAX)