Corona Gold Corporation

May 02, 2014 20:00 ET

Corona Acquires Interest in Kilo Goldmines Ltd.

TORONTO, ONTARIO--(Marketwired - May 2, 2014) - Corona Gold Corporation ("Corona" or the "Company") (TSX:CRG) announces that it has purchased 11.2 million equity units ("Units") of Kilo Goldmines Ltd. ("Kilo") as part of a previously-announced private placement (the "Placement") that closed today. The price of each Unit was $0.25 and each Unit consists of one post-consolidated Kilo common share (a "Common Share") and one Kilo Common Share purchase warrant (a "Warrant"). Each Warrant entitles the Company to acquire one additional Common Share for five years at a price of $0.35 during the first two years and $0.50 for the next three years.

Prior to the private placement, Corona directly owned 1,500,000 Common Shares and no other securities of the Company. Following the Offering, Corona now owns 12,700,000 Common Shares, representing approximately 22.4% of the number of Common Shares issued and outstanding, as well as Warrants to acquire up to a further 11,200,000 Common Shares. Assuming the exercise of all Warrants by Corona only and no other exercises, Corona would own up to approximately 35.2% of the number of Common Shares on a partially diluted basis.

Kilo's principal asset is the Adumbi gold prospect in the Democratic Republic of the Congo.

Corona's participation in the Placement was for investment purposes and may be increased or decreased in the future as considered appropriate in light of investment criteria, market conditions and other factors, and in accordance with the provisions of applicable securities legislation.

Contact Information

  • Corona Gold Corporation
    Murray John
    (416) 482-8606