Mengold Resources Inc.
TSX VENTURE : MNI

Mengold Resources Inc.

June 09, 2008 17:47 ET

Mengold Closes $349,000 Private Placement

MONTREAL, QUEBEC--(Marketwire - June 9, 2008) - Mengold Resources Inc. ("Mengold") (TSX VENTURE:MNI) has closed a non-brokered private placement through the sale of 1,396,000 units (the "Units") at a price of $0.25 per Unit, for gross proceeds of $349,000.

Each Unit consists of one flow-through common share and one transferable share warrant (each share purchase warrant a "Warrant" and collectively, the "Warrants"). Each Warrant entitles its holder thereof to acquire one additional common share at a price of $0.40 for a period of 24 months following the closing date. The Warrants will be subject to an accelerated expiry in the event that the price of the common shares of Mengold on the TSX Venture Exchange is more than $0.70 for a period of at least 21 consecutive trading days. Mengold may then accelerate the expiry time to 14 calendar days from the date express written notice is provided to the holders of Warrants.

Subject to regulatory approval, cash finder's fees of $27,520 and 110,080 compensation options, both representing 8% of the gross proceeds raised, will be paid to finders. The compensation options entitle the holder to acquire an aggregate of 110,080 Units at an exercise price of $0.25 per Unit for a period of two years from the closing date.

All securities issued in conjunction with the private placement will be subject to a four-month hold period expiring on October 5, 2008.

Proceeds of the private placement will be used to fund Mengold's exploration activities which are currently focused on the Burchell Lake and Goldcreek Properties in the Shebandowan area, west of Thunder Bay, Ontario.

Mengold is engaged in mineral exploration for precious and base metals. The Company has recently completed a 4,630m diamond drilling program at the Burchell Lake and Goldcreek Properties, both prospective for gold, copper, zinc, nickel, and molybdenum, in the Shebandowan area of Northwestern Ontario. Mengold has 37,806,088 common shares outstanding.

For further information, please bookmark www.mengold.ca.

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

Contact Information

  • In Canada
    Mengold Resources Inc.
    Joel Scodnick, President and Chief Executive Officer
    (705) 522-4439 or (807) 629-7516
    (705) 522-8694 (FAX)
    Email: scodnick@mengold.ca or scodnick@netspectrum.ca
    or
    Mengold Resources Inc.
    Douglas Reeson
    C.F.O. and Director
    (416) 533-9664
    (416) 533-2890 (FAX)
    Email: reeson@mengold.ca
    or
    Noble Investment
    Dan Patience
    Investor Relations
    (403) 262-7111
    Email: noblehouse@shaw.ca
    or
    In Europe
    Mengold Resources Inc.
    W. Ian L. Forrest, Chairman and Director
    011.41.22.809.9511
    011.41.22.899.9501 (FAX)
    Email: forrest@mengold.ca
    Website: www.mengold.ca