Buffalo Gold Ltd.
TSX VENTURE : BUF.U

Buffalo Gold Ltd.

October 24, 2005 19:59 ET

Buffalo Arranges USD$3.5 Million Private Placement

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Oct. 24, 2005) -

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

Buffalo Gold Ltd. (TSX VENTURE:BUF.U) is pleased to report that it has, subject to regulatory approval, arranged a brokered private placement of 10,000,000 units at a price of USD$0.35 per unit to generate gross proceeds of USD$3,500,000 that will be used to fund its initial phase of work on the Mt. Kare Property in Papua New Guinea. Each unit will consist of one share and one half share purchase warrant, every whole warrant entitling the purchase of one additional share of Buffalo USD$0.50 per share for a period of two years from the closing date. After four months following the closing date and until the expiry date of the warrants, if the closing price of Buffalo's shares exceeds USD$1.00 for fifteen consecutive trading days, Buffalo may, within thirty days of such fifteen consecutive trading day period, provide notice compelling the exercise of the warrants within thirty days of such notice.

Canaccord Capital Corporation ("Canaccord") has agreed to act as Buffalo's agent in respect of this placement and will receive a commission of 7.5% of the gross proceeds, such fee to be payable half in cash and half in units at Canaccord's election, a broker's warrant entitling the purchase of up to 750,000 shares of Buffalo on the same terms as the warrants included in the units. Canaccord will also receive an administration fee and a corporate finance fee.

Canaccord also has been given the right to increase the offering by 2,000,000 units at any time prior to closing of the offering.

To find out more about Buffalo Gold Ltd. (TSX VENTURE:BUF.U), please visit our website at www.buffalogold.ca.

On behalf of the Board of Directors of

BUFFALO GOLD LTD.

Damien Reynolds, Chairman of the Board

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

Contact Information

  • Buffalo Gold Ltd.
    Damien Reynolds
    Chairman of the Board
    (604) 685-5492
    (604) 688-4169 (FAX)
    www.buffalogold.ca