Golden Tag Resources Ltd.
TSX VENTURE : GOG

Golden Tag Resources Ltd.

April 05, 2011 08:45 ET

Golden Tag to Raise $2.75 Million

MONTREAL, QUEBEC--(Marketwire - April 5, 2011) - Golden Tag Resources Ltd. (TSX VENTURE:GOG) ("Golden Tag") announces that it is proposing to complete a non-brokered private placement to sell up to five million units at a price of $0.55 per unit, for gross proceeds of up to $2,750,000. Each unit will consist of one common share and one-half of one common share purchase warrant. Each whole Warrant entitles the holder to purchase one common share at a price of $0.75 per common share for the period ending 24 months from the closing date, provided that, if after four months and one day following the closing date, the common shares close in excess of $1.25 for any 20 consecutive trading days, Golden Tag will be able to accelerate the expiry date of the warrants to a date that is 30 days after notice of the new expiry date is provided to the warrant holders. 

PowerOne Capital Markets Limited will act as a finder in the financing and will receive a cash commission of 7 per cent of the total gross proceeds plus such number of warrants equal to 10 per cent of the total number of units issued in connection with the offering. The compensation warrants will be exercisable at a price of $0.55 cents per compensation warrant for a period of 24 months from the closing date to acquire one unit.

The terms of the placement and finders fees are subject to TSX Venture acceptance. Completion is expected to take place on or around April 14, 2011 and is subject to the negotiation and execution of definitive agreements as well as customary closing conditions. Proceeds will be used for exploration and general corporate purposes.

Golden Tag Resources Ltd. is a junior exploration company exploring for high grade gold and silver deposits at the San Diego silver project in Durango State, Mexico; the Aquilon Gold project in James Bay, Quebec; and the McCuaig gold project in Red Lake, Ontario. Golden Tag has 47,450,958 issued and outstanding shares.

Statements in the release that are "forward-looking statements" are based on current expectations and assumptions that are subject to risks and uncertainties. Completion of any financing is subject to capital market conditions and other factors beyond the Company's control. Actual results could differ materially. We undertake no duty to update any forward-looking statement to conform the statements to actual results or changes in our expectations.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.

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