First Gold Exploration Inc.

First Gold Exploration Inc.

November 25, 2009 08:01 ET

First Gold Closes a $900,000 Financing

LAVAL, QUEBEC--(Marketwire - Nov. 25, 2009) - First Gold Exploration Inc. (TSX VENTURE:EFG)(FRANKFURT:F12) is pleased to announce that it has closed a non-brokered private placement for $900,000 following the press release dated October 29th, 2009.


First Gold has issued common share Units at a cost of $0.10 per Unit for total gross proceeds of $900,000. Each Unit consisting of 1 common share of the Corporation at a price of $0.10 per share and 1/2 common share purchase warrant of the Corporation. Each hole warrant entitles the holder thereof to purchase one common share of the Corporation for a period of 12 months at a price of $0.12 per share or $0.14 for the next 12 months.

This private placement was to be of $550,000 and the Corporation had to increase it by $350,000 to accommodate investors outside of Canada.

As finders' fees with the private placement, the Corporation paid a $2,250 cash commission to Canaccord Capital, $4,000 to Financiere Banque Nationale, $3,500 $ to Woodstone Capital inc., $20,000 to LOM Nominees Limited and issued 332,500 warrants entitling the holders to purchase 332,500 common shares of the Corporation at price of $0.13 per share for one 24 months following the closing.

The Corporation is going to use the proceeds towards working capital, investments on its new Mexican silver property and to look for more acquisitions.

The Corporation is also arranging a $600,000 financing at $0.15 a share and will include a 1/2 common share purchase warrant, one full warrant will give the holder the right to acquire 1 common share for $0.20 for the next 24 months from closing.

"We are extremely pleased of these financings, First Gold will be in a great position to advance all of its projects, and has attracted new shareholders with this closed offering", comments Eric Leboeuf, President.

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.

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