FirstGrowth Exploration & Development Services Corp.
OTC Bulletin Board : FGCDF

FirstGrowth Exploration & Development Services Corp.

June 18, 2008 14:58 ET

FirstGrowth Announces $5 Million Private Placement

VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 18, 2008) - FirstGrowth Exploration & Development Services Corp. (TSX VENTURE:FGC)(OTCBB:FGCDF)(FRANKFURT:G8Q) (the "Company") announced today that it will proceed, subject to regulatory approval and formal documentation, with a non-brokered private placement to raise up to $5,000,000 by way of a convertible debenture. The use of proceeds for the debenture is for additional equipment and general working capital.

Terms of the Debenture (the "Debenture")

The debenture will mature on the expiry of four years from the date of issuance by the Company. The interest rate will be 10 per cent per year, payable semi-annually, in arrears, on each of June 30 and December 31 of each year.

The principal amount of the debenture will be convertible at the election of the holder into common shares of the Company at the price of $0.80. Beginning in the second year, the Company, at its discretion, can force conversion of the debenture providing the closing price of the stock is at or above $1.20 for a minimum of 25 consecutive trading days.

The debenture may be redeemed, in whole or in part, at the option of the Company at any time beginning in the third year from the date of issuance of the debenture.

A finder's fee of 5 percent may be paid in relation to this Private Placement, subject to approval of the TSX Venture Exchange.

About FirstGrowth

FirstGrowth is an oil, gas and mineral exploration services company focused on providing data-rich high resolution subsurface images - essentially a brand-new exploration tool - to the resource exploration and development industry. Driven by a proven and experienced management team and using cutting edge technology, FirstGrowth has aggressively grown its revenues for three consecutive years.

FirstGrowth's subsidiary, Kinetex Inc., has been a developer of advanced exploration techniques with 2008 marking its 10th year, as an integrator of applied sciences to the resource industry. Kinetex's services being utilized in both oil & gas exploration and development, and precious and base mineral exploration and evaluation. One of Kinetex's primary services is targeted implementation and optimization of seismic imaging using the proprietary VectorSeis Recording System and Digital 3 Component Full Wave Imaging.

The TSX Venture Exchange Inc. has neither approved nor disapproved the contents of this press release.

Contact Information

  • FirstGrowth Exploration & Development Services Corp.
    Gil Schneider
    President & CEO
    (604) 484-5761 or Toll Free: 1-888-484-5761
    (604) 484-5760 (FAX)