Moto Goldmines Limited

Moto Goldmines Limited

March 17, 2008 15:43 ET

Moto Goldmines Announces "Bought Deal" Financing

PERTH, WESTERN AUSTRALIA--(Marketwire - March 17, 2008) -


Moto Goldmines Limited ("Moto") (TSX:MGL)(AIM:MOE) announced today that it has entered into an agreement with a syndicate of underwriters led by BMO Capital Markets and GMP Securities L.P., and including Haywood Securities Inc., under which the underwriters have agreed to buy on a "bought deal" basis pursuant to a short form prospectus to be filed in all of the Provinces of Canada other than Quebec, 11,000,000 Common Shares (the "Common Shares"), at a price of C$4.35 per Common Share for gross proceeds of C$47,850,000. Moto has also granted the underwriters an over-allotment option exercisable in whole or in part at the sole discretion of the underwriters for 30 days from completion of the offering, to purchase up to an additional 1,650,000 Common Shares at the offering price of C$4.35, solely to cover over-allotments, if any, and for market stabilization purposes. The net proceeds of the offering are estimated to be C$45.3 million and will be used for further exploration and development of the Moto Gold Project, to repay a portion of the indebtedness owed by Moto to Societe d'Organisation, de Participation et de Management (Orgaman) and for general corporate purposes. The offering is expected to close on or about April 8, 2008 and is subject to Moto receiving all necessary regulatory approvals.

The obligations of the underwriters may be terminated in certain stated circumstances and upon the occurrence of certain stated events, which include a "disaster out", a "material change out" and a "regulatory out". BMO Capital Markets as sole bookrunner on behalf of the underwriters may effect transactions that stabilize or maintain the market price of Moto's Common Shares at levels other than those which might otherwise prevail in the open market for a limited period after the date on which the Common Shares are issued. Those transactions, if commenced, may be discontinued at any time, and must be brought to an end after a limited period.

The securities offered have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. This news release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any State in which such offer, solicitation or sale would be unlawful.

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