Frontline Gold Corporation
TSX VENTURE : FGC

Frontline Gold Corporation

October 20, 2010 16:01 ET

Frontline Announces $3-$5 Million Private Placement

TORONTO, ONTARIO--(Marketwire - Oct. 20, 2010) -

(figures in Canadian dollars)

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

Frontline Gold Corporation (TSX VENTURE:FGC) (the "Company") announces that it has entered into an agreement with Stonecap Securities Inc. and CIBC World Markets Inc. in connection with a marketed, best efforts private placement of units (the "Units") to raise gross proceeds of $3-$5 million (the "Offering"). Each Unit shall consist of one common share of the Company and one-half of one common share purchase warrant, the pricing and terms of which will be determined in the context of the market.

The net proceeds of the Offering will be used for exploration at the Company's Niaouleni property in Mali, working capital and general corporate purposes.

The Offering will be made by way of private placement to accredited investors in all provinces of Canada. The Offering is expected to close on or about November 18, 2010, and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals including the approval of the TSX Venture Exchange and the securities regulatory authorities. The Units will be subject to a four-month hold period.

This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended, or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless an exemption from such registration is available.

Some of the statements contained in this release are forward-looking statements, such as estimates and statements that describe the Company's future plans, objectives or goals, including words to the effect that the Company or management expects a stated condition or result to occur. Since forward-looking statements address future events and conditions, by their very nature, they involve inherent risks and uncertainties. Actual results in each case could differ materially from those currently anticipated in such statements.

Neither the TSX Venture Exchange nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • Frontline Gold Corporation
    1550 Bedford Highway, Suite 802, Sun Tower
    Bedford, NS B4A 1E6
    (902) 832-5555
    (902) 832-2223 (FAX)
    info@frontlinegold.com