Frontline Gold Corporation
TSX VENTURE : FGC

Frontline Gold Corporation

August 30, 2010 14:19 ET

Frontline Gold Closes Financing With MineralFields Group

HALIFAX, NOVA SCOTIA--(Marketwire - Aug. 30, 2010) -

NOT FOR DISTRIBUTION OR DISSEMINATION IN THE UNITED STATES OF AMERICA

Frontline Gold Corp. (the "Company" or "Frontline") (TSX VENTURE:FGC) is pleased to announce the completion of its previously announced non-brokered private placement with the MineralFields Group. Frontline issued 3,225,805 flow-through units (the "FT Units") at a purchase price of $0.155 per FT Unit for gross proceeds of $500,000 ("Private Placement").

Each FT Unit consists of one flow-through common share and one common share purchase warrant (a "Warrant"), each Warrant entitling the holder to purchase one additional non-flow-through common share in the capital of the Company at an exercise price of $0.20 until August 27, 2012.

Limited Market Dealer Inc. ("LMDI") received a cash finder's fee of $25,000, representing 5% of the gross proceeds raised in the Private Placement, as well as a non-transferable option (the "LMDI Option") to acquire 274,193 units of the Company (the "LMDI Units"), equivalent to 8.5% of the total FT Units sold in the Private Placement. The LMDI Option is exercisable into LMDI Units at an exercise price of $0.155 per LMDI Unit until August 27, 2012. Each LMDI Unit consists of one non-flow-through common share and one share purchase warrant (an "Option Warrant"), each Option Warrant entitling the holder to purchase one non-flow-through common share in the capital of the Company at an exercise price of $0.20 until August 27, 2012.

"We are very pleased to be entering into this relationship with the MineralFields Group", said Walter Henry, the Company's President and CEO. "This is an important milestone in the growth of Frontline and we look forward to working with the MineralFields Group."

Proceeds of the Private Placement will be used to incur expenditures which qualify as Canadian exploration expenses and will be spent primarily on the Company's Stewart and Poly gold properties in the Stewart gold camp region of British Columbia.

The securities being offered have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States of America in the absence of registration or an applicable exemption from the registration requirements. This press release does not constitute an offer to sell or the solicitation of an offer to purchase securities in the United States of America.

About Frontline Gold Corp.

Frontline is a Mali focused gold exploration company with experienced management, a solid exploration team and a promising new African gold project offering investors an excellent opportunity.

Please visit our website at www.frontlinegold.com for the most recent presentation.

About MineralFields, Pathway and First Canadian Securities®

MineralFields Group (a division of Pathway Asset Management), based in Toronto, Vancouver Montreal and Calgary, is a mining fund with significant assets under administration that offers its tax-advantaged super flow-through limited partnerships to investors throughout Canada as well as hard-dollar resource limited partnerships to investors throughout the world. Pathway Asset Management also specializes in the manufacturing and distribution of structured products and mutual funds (including the Pathway Multi Series Funds Inc. corporate-class mutual fund series). Information about MineralFields Group is available at www.mineralfields.com. First Canadian Securities® (a division of Limited Market Dealer Inc.) is active in leading resource financings (both flow-through and hard dollar PIPE financings) on competitive, effective and service-friendly terms, and offers investment banking, mergers and acquisitions, and mining industry consulting, services to resource companies. MineralFields and Pathway have financed several hundred mining and oil and gas exploration companies to date through First Canadian Securities®.

On Behalf of the Board

Walter Henry, President & CEO

This press release includes certain statements that may be deemed "forward-looking statements". All statements in this release, other than statements of historical facts, that address future exploration drilling, exploration activities and events or developments that the Company expects, are forward looking statements. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, exploitation and exploration successes, continued availability of capital and financing, and general economic, market or business conditions.

The TSX Venture Exchange Inc. has in no way passed upon the merits of the proposed transaction and has neither approved nor disapproved the contents of this press release. The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this press 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