Mandorin Goldfields Inc.
TSX VENTURE : MGD

Mandorin Goldfields Inc.

August 08, 2005 06:00 ET

Mandorin Goldfields Inc.: Update and Equity Financing

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Aug. 8, 2005) - Mandorin Goldfields Inc. (TSX VENTURE:MGD) -

Update

Mandorin Goldfields Inc. ("the Company") is advancing its development strategy milestones and the Board is very pleased with the progress being made.

Over the past months Errol Smart, Chief Executive Officer, has initiated evaluation work on a series of projects that fit the development strategy. This work has identified projects considered to have substantial merit. Accordingly, the Company has entered into Confidentiality Agreements on these projects (3 gold exploration projects with near-term production potential in Southern African greenstone belts, 1 coal project with potential for production in Southern Africa) to enable it to complete detailed due diligence with a view to entering into Option/Financing/Acquisition Agreements, as appropriate.

"Mandorin is very pleased to have progressed its development plans in such an efficient and speedy manner," states Errol Smart, CEO. "We are fortunate to have the skill-sets at our disposal to locate, evaluate and finance the outstanding opportunities currently being reviewed. All progress with respect to the results of the due diligence and, if appropriate, the optioning, financing and acquisition of the projects will be announced promptly so shareholders are fully informed about the Company's progress as it develops its value-adding strategy."

Financing

The Company plans to raise up to CAD$1,400,000 to fund the above due diligence investigations and for working capital from a non-brokered private placement financing from the sale of up to 28,000,000 units at a price of CAD$0.05 per unit. Each unit will consist of one common share and one-half of one common share purchase warrant. One common share purchase warrant will be exercisable, over a period of two years, to acquire one additional common share at a price of CAD$0.15 when exercised within the first year and CAD$0.25 when exercised within the second year. The securities, issuable in the private placement, including any common shares issued on the exercise of warrants, will have a hold period of four months from the closing. The Company will pay finder's fees allowable under the TSX Venture Exchange policies. The private placement is subject to compliance with applicable securities laws and to receipt of regulatory approval. The Company's non-brokered private placement news release dated April 20, 2005 is superseded by today's news release.

In accordance with the 2005 Milestones the Company has been introduced to the European finance markets and CAD$600,000 of the above financing is being subscribed from investors emanating from this source.

Mandorin is focused on developing advanced projects. The principal focus is on assembling a portfolio of gold assets that are either in production or can be rapidly advanced to production. Additionally, the Company's asset mix may be enhanced with the addition of other suitable production projects in commodities such as coal and diamonds.

On behalf of Mandorin Goldfields Inc.

Malcolm L Stevens, Executive Chairman and President

Errol Smart, Director and Chief Executive Officer

Statements in this press release other than purely historical information, including statements relating to the Company's future plans and objectives or expected results, constitute forward-looking statements. Forward-looking statements are based on numerous assumptions and are subject to all of the risks and uncertainties inherent in the Company's business, including risks inherent in mineral exploration and development. As a result, actual results may vary materially from those described in the forward-looking statements.


The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Mandorin Goldfields Inc.
    Malcolm L Stevens
    Executive Chairman and President
    +612 9247 5355
    +612 9247 5344 (FAX)
    mls@canaustra.com.au
    or
    Mandorin Goldfields Inc.
    Errol Smart
    Director and Chief Executive Officer
    +278 3308 0823
    errol@canaustra.com.au