Energold Drilling Corp.
TSX VENTURE : EGD

Energold Drilling Corp.

June 14, 2016 12:30 ET

Energold Drilling Announces Public Offering

VANCOUVER, BRITISH COLUMBIA--(Marketwired - June 14, 2016) -

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

Energold Drilling Corp. (TSX VENTURE:EGD) ("Energold" or the "Company") is pleased to announce that it has filed and obtained a receipt for a preliminary short form prospectus in connection with a marketed "best efforts" public offering of units (each, a "Unit") at a price of $1.00 per Unit for aggregate gross proceeds of up to $5,000,000 (the "Offering"). Each Unit will consist of one common share of the Company (each, a "Common Share") and one Common Share purchase warrant (each, a "Warrant") to acquire an additional Common Share at a price of $1.75 for a period of 18 months from the date of the closing of the Offering. The Offering will be conducted through a syndicate of agents led by Clarus Securities Inc. and including M Partners Inc. (together, the "Agents").

In connection with the Offering, the Company has granted the Agents the option, exercisable in whole or in part at any time and from time to time until the date that is 30 days from the date of the closing of the Offering, to sell up to an additional 15% of the Units sold under the Offering on the same terms as the Units sold under the Offering.

The Units will be offered in the provinces of British Columbia, Alberta and Ontario. A copy of the preliminary short form prospectus is available on the Company's profile on SEDAR at www.sedar.com. The Offering is expected to close the week of June 27, 2016 and is subject to certain customary conditions and regulatory approvals and the entering into by the Company and the Agents of an agency agreement. The Company has applied to list the Common Shares, including the Common Shares issuable upon exercise of the Warrants, on the TSX Venture Exchange (the "TSXV"). Listing will be subject to the Company fulfilling all of the listing requirements of the TSXV.

The Company intends to use the proceeds of the Offering to fund working capital.

About Energold

Energold is a leading global specialty drilling company that services the mining, energy, water, infrastructure and manufacturing sectors in approximately 25 countries. Specializing in a socially and environmentally sensitive approach to drilling, Energold provides a comprehensive range of drilling services from early stage exploration to mine site operations for all commodity sectors and has an established drill rig manufacturer, Dando Drilling International, based in the United Kingdom. Energold also holds 7.98 million shares of IMPACT Silver Corp., a silver producer in Mexico.

This press release does not constitute an offer of the securities of the Company for sale in the "United States" or to "U.S. persons" (as such term is defined in Regulation S under the United States Securities Act of 1933, as amended (the "1933 Act"). The securities of the Company have not been registered under the 1933 Act and may not be offered or sold within the United States or to U.S. persons absent registration or an exemption from registration under the 1933 Act. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any state in which such offer, solicitation or sale would be unlawful.

Cautionary Statements

Neither the 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 release.

Forward-Looking Statements: Some statements in this news release contain forward-looking information. These statements include, but are not limited to, the terms of the Offering, the successful completion of the Offering, the Company's anticipated use of proceeds and the expected timing for closing of the Offering. These statements address future events and conditions and, as such, involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the statements. Such factors include, among others, failure to obtain TSX Venture Exchange approval of the Offering, the effects of general economic conditions, a reduction in the demand for the Company's drilling services, the price of commodities, changing foreign exchange rates, actions by government authorities, the failure to find economically viable acquisition targets, title matters, environmental matters, reliance on key personnel, the ability for operational and other reasons to complete proposed activities and work programs, the need for additional financing and the timing and amount of expenditures. No assurance can be given that the Offering will be completed as described, or at all. Accordingly, readers should not place undue reliance on any forward-looking statements or information. Except as required by applicable securities laws, forward-looking statements speak only as of the date on which they are made and Energold undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise.

Contact Information

  • Energold Drilling Corp.
    Frederick Davidson
    President & Chief Executive Officer
    (604) 681-9501
    fdavidson@energold.com

    Energold Drilling Corp.
    Steven Gold
    Chief Financial Officer
    (416) 648-4065
    sgold@energold.com