Gateway Gold Corp.
TSX : GTQ

Gateway Gold Corp.

June 10, 2008 10:55 ET

Gateway Gold Corp. Announces Closing of Private Placement

VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 10, 2008) - Gateway Gold Corp. (TSX:GTQ) (the "Company") is pleased to announce that it has completed its previously announced (press release dated May 13, 2008) private placement of units ("Units"). Under the private placement, the Company issued 5,196,000 Units at a price of $0.25 per Unit for aggregate gross proceeds of $1,299,000, with 780,000 Units being issued on a non-brokered private placement basis (the "Non-Brokered Placement") and 4,416,000 Units being issued on a brokered private placement basis (the "Brokered Placement") through Bolder Investment Partners, Ltd. (the "Agent"). The private placement was reduced from the 6,000,000 Units originally announced to 5,196,000 Units due to the requirement of the Toronto Stock Exchange that shareholders approve any private placement that results in an aggregate number of securities issuable of greater than 25% of the issued share capital of a company. Each Unit consists 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 at a price of $0.35 per share until June 9, 2010, subject to the right of the Company to accelerate the expiry date in certain circumstances.

In connection with the Brokered Placement, the Agent received a cash commission equal to 7.5% of the gross proceeds received under the Brokered Placement, and 441,600 compensation warrants ("Compensation Warrants") exercisable until June 9, 2010 to purchase up to 441,600 common shares of the Company at a price of $0.35 per common share.

In connection with the Non-Brokered Placement, the Company paid a cash finder's fee to certain arm's length parties equal to 10% of the gross proceeds received from the sale of Units placed through the efforts of the finders.

All securities issued or issuable under the private placement are subject to a four-month hold period under applicable Canadian securities laws.

The securities being offered have not, nor will they be registered under the United States Securities Act of 1933, as amended, and may not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons absent U.S. registration or an applicable exemption from the U.S. registration requirements. This release does not constitute an offer for sale of securities in the United States.

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 statements.

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