Moto Goldmines Limited

Moto Goldmines Limited

April 03, 2009 08:04 ET

Moto Goldmines Announces Bought Deal Financing

PERTH, WESTERN AUSTRALIA--(Marketwire - April 3, 2009) -


Moto Goldmines Limited ("Moto") (TSX:MGL)(AIM:MOE) is pleased to announce that it has entered into an agreement with a syndicate of underwriters co-led by GMP Securities L.P. and BMO Capital Markets and including Haywood Securities Inc. and RBC Capital Markets (the "Underwriters") which has agreed to purchase, on a bought deal basis, 17,860,000 common shares of Moto at a price of C$2.80 per share, for aggregate gross proceeds of approximately C$50 million. The Underwriters will also have the option, exercisable in whole or in part at any time up to 30 days after the closing of the offering, to purchase up to an additional 2,679,000 common shares to cover over-allotments, if any, and for market stabilization purposes. If the option is exercised in its entirety, the aggregate gross proceeds of the offering will be approximately C$57.5 million.

The Company plans to use the net proceeds from the offering to advance the Moto Gold Project as well as for general corporate purposes including working capital.

The common shares will be offered by way of a short form prospectus to be filed in all of the provinces of Canada, except Quebec, and in the United States on a private placement basis pursuant to exemptions from the registration requirements of the United States Securities Act of 1933, as amended (the "Securities Act") and to buyers in the United Kingdom on an exempt basis. The common shares offered will not be and have not been registered under the Securities Act and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act and applicable state securities laws.

The offering is scheduled to close on or about April 27, 2009 and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals including the approval of the Toronto Stock Exchange and the securities regulatory authorities.


Certain statements contained in this announcement that are not historical facts constitute "forward-looking statements", including but not limited to those statements with respect to the Company's plans to develop the Moto Gold Project and the Company's financial resources. There can be no assurance that additional financing for the Moto Gold Project will be made available on terms that are acceptable to the Company, or at all, that the Moto Gold Project will be successfully developed, that any mineralisation previously disclosed in respect of the Moto Gold Project will be proven to be economic, that anticipated metallurgical recoveries will be achieved, that future evaluation work will confirm the viability of deposits identified in the Moto Gold Project or that future required regulatory approvals will be obtained.

This list is not exhaustive of the factors that may affect our forward-looking statements. These and other factors should be considered carefully and readers should not place undue reliance on such forward-looking statements. Except as may be required by law, Moto disclaims any intention or obligation to update or revise forward-looking information, whether as a result of new information, future events or otherwise.

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