Medoro Resources Ltd.
TSX VENTURE : MRS

Medoro Resources Ltd.

June 11, 2009 16:27 ET

Medoro Announces Second Private Placement

TORONTO, ONTARIO--(Marketwire - June 11, 2009) -

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

Medoro Resources Ltd. (TSX VENTURE:MRS) announced today that it intends to complete, on a "best efforts" private placement basis, an offering of up to 11,200,000 common shares at a price of C$0.1875 per share, for gross proceeds of up to C$2,100,000. This offering is in addition to the previously announced private placement of up to 57,500,000 common shares at a price of C$0.12 per share for gross proceeds of up to C$6,900,000.

The private placements in aggregate represent offerings of up to 68,700,000 common shares for aggregate gross proceeds of up to C$9,000,000. Both private placements are expected to close prior to the end of June 2009, subject to finalisation of subscription agreements and receipt of regulatory approval. GMP Securities L.P. will be the sole agent in respect of both private placements, which are subject to the parties executing a formal agency agreement.

All securities issued as part of both private placements will be subject to a four-month hold period from the closing date. The funds raised will principally be used for the Company's 2009 exploration and drilling program in Venezuela, for the performance of due diligence investigations and procedures on potential or announced acquisition targets in Colombia, as well as for other general and corporate purposes.

The private placements will be 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