Medoro Resources Ltd.
TSX VENTURE : MRS

Medoro Resources Ltd.

July 22, 2009 12:04 ET

Medoro Announces Completion of Private Placement

TORONTO, ONTARIO--(Marketwire - July 22, 2009) -

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES OF AMERICA

Medoro Resources Ltd. (TSX VENTURE:MRS) announced today that it has completed a brokered private placement of an aggregate of 34,500,000 units of the company at a price of C$0.25 per unit for gross proceeds of C$8,625,000. Each unit comprises one common share of the company and one common share purchase warrant. Each warrant is exercisable to acquire one common share of the company for two years from closing at an exercise price of C$0.50 per share. Peninsula Merchant Syndications Corp. purchased 10,000,000 units under the private placement.

GMP Securities L.P. acted as agent on the private placement. For its services in connection with the offering, the agent received a cash commission equal to 6% of the gross proceeds of the offering and compensation options exercisable to acquire up to 2,070,000 units at an exercise price of C$0.25 per unit. The compensation options expire on July 22, 2011.

All securities issued as part of the offering, including shares issued upon exercise of the warrants and compensation options, are subject to a four-month hold period expiring on November 23, 2009. The funds raised will principally be used for the continued performance of due diligence investigations and procedures on potential or announced acquisition targets in Colombia, the establishment of Colombian operations, as well as for other general and corporate purposes.

The offering was made in compliance with the rules of the TSX Venture Exchange.

Medoro Resources is a gold exploration and development company focused on acquiring properties of merit for potential joint ventures with senior producers. The company recently announced the execution of an arrangement agreement to acquire the securities of Colombia Goldfields Ltd., which has properties located in the Marmato District of Colombia. Medoro also holds a 100% interest in the Lo Increible 4A and 4B concessions in Venezuela and interests in eleven gold exploration areas in the Republic of Mali. Additional information on Medoro Resources can be found by visiting the company's website at www.medororesources.com.

This communication shall not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. This press release is not an offer of securities for sale into the United States or Canada. No offering of securities shall be made in the United States or Canada except pursuant to registration under the US Securities Act of 1933, as amended, or an exemption therefrom.

This press release contains forward-looking statements based on assumptions, uncertainties and management's best estimates of future events. Actual results may differ materially from those currently anticipated. Investors are cautioned that such forward-looking statements involve risks and uncertainties. Important factors that could cause actual results to differ materially from those expressed or implied by such forward looking statements are detailed from time to time in the company's periodic reports filed with the British Columbia Securities Commission and other regulatory authorities. The company has no intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Neither 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 release.

Contact Information

  • Medoro Resources Ltd.
    Peter Volk
    General Counsel & Secretary
    (416) 603-4653