Gateway Gold Corp.
TSX : GTQ

Gateway Gold Corp.

May 13, 2008 14:06 ET

Gateway Gold Announces Private Placement

VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 13, 2008) - Gateway Gold Corp. (TSX:GTQ) (the "Company") is pleased to announce that it has negotiated a brokered private placement with Bolder Investment Partners, Ltd. (the "Agent") of up to 6,000,000 units ("Units") at a price of $0.25 per Unit for total gross proceeds of up to $1,500,000 (the "Offering"). Each Unit will consist of one common share of the Company and one-half of a non-transferable share purchase warrant (a "Warrant") with each whole Warrant entitling the holder to purchase an additional common share of the Company for a period of two years from the closing of the Offering at a price of $0.35 per share. In the event that the Company's common shares trade on the Toronto Stock Exchange at or above a weighted average trading price of $0.70 for a period of 20 consecutive trading days at any time after four months and one day after the closing date, the Company may accelerate the expiry date of the Warrants by giving notice to the holders thereof and in such case the Warrants will expire on the 30th day after the date on which such notice is given by the Company.

In consideration for their services, the Agent will receive a cash commission equal to 7.5% of the gross proceeds received by the Company from the Offering (of which the Agent may elect to be paid up to half in Units) and a work fee of $7,500 (plus GST). In addition, the Agent will receive compensation warrants ("Compensation Warrants") exercisable for common shares of the Company (the "Compensation Shares") equal in number to 10% of the total number of Units sold under the Offering. The Compensation Warrants will be exercisable into one common share of the Company at a price of $0.35 per Compensation Share for a period of two years from the closing of the Offering.

The Company will use the net proceeds received from the Offering to fund further exploration work on the Company's Big Springs and Santa Fe Properties.

For further information about the Company and its activities, please refer to the Company's website at www.gatewaygold.com and under the Company's profile at www.sedar.com.

ON BEHALF OF THE BOARD

Michael D. McInnis, P.Eng., President and CEO

Dr. Giles Peatfield, P. Eng. is an Independent Qualified Person for GTQ and has reviewed and approved the contents of this release.

Certain of the statements made and information contained herein is "forward- looking information" within the meaning of the Ontario Securities Act. and the Alberta Securities Act or "forward-looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934 of the United States Forward-looking statements and forward looking information are subject to a variety of risks and uncertainties which could cause actual events or results to differ from those reflected in the forward-looking statements and forward looking information, including, without limitation, risks and uncertainties relating to the interpretation of drill results and the estimation of mineral resources, the geology, grade and continuity of mineral deposits, the possibility that future exploration results will not be consistent with the Company's expectations, accidents, equipment breakdowns, title matters and surface access, labour disputes or other unanticipated difficulties with or interruptions in production, the potential for delays in exploration activities and the potential for unexpected costs and expenses, commodity price fluctuations, currency fluctuations, failure to obtain adequate financing on a timely basis and other risks and uncertainties, including those described under Risk Factors Relating to the Company's Business in the Company's Annual Information Form and in each management discussion and analysis. Forward-looking information and forward looking statements are in addition based on various assumptions including, without limitation, the expectations and beliefs of management, the assumed long term price of gold, that the Company will receive required permits and access to surface rights, that the Company can access financing, appropriate equipment and sufficient labour and that the political environment within Nevada will continue to support the development of environmentally safe mining projects. Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in forward-looking statements. Accordingly, readers are advised not to place undue reliance on forward-looking statement.

The TSX does not accept responsibility for the adequacy or the accuracy of this release.

Contact Information

  • Gateway Gold Corp.
    Michael D. McInnis
    President
    (604) 801-6040
    (604) 801-6075 (FAX)
    or
    Gateway Gold Corp.
    Raju Wani
    Investor Relations
    (403) 240-0555
    or
    Gateway Gold Corp.
    Ron Cooper
    Investor Relations
    (604) 986-0112
    Website: www.gatewaygold.com