New Guinea Gold Corporation
TSX VENTURE : NGG

New Guinea Gold Corporation

March 23, 2007 16:21 ET

New Guinea Gold Closes First Tranche of its 12 Million Unit Private Placement

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - March 23, 2007) - New Guinea Gold Corporation (" NGG" or the "Company")(TSX VENTURE:NGG) announces that it has closed the first tranche of a private placement arranged through its agent, Bolder Investment Partners, Ltd. ("Bolder" or "The Agent") in an offer (the "Offer" or the "Offering"), of up to 12,000,000 units of the Company at $0.42 per unit (the "Units") to raise up to $5,040,000. The first tranche formally closed is for 10,112,500 Units for gross proceeds of $4,247,250.

Each Unit consists of one common share and one half of one non-transferable common share purchase warrant (the "Warrant"). Each whole Warrant entitles the holder to purchase one additional common share of the Company at a price of $0.55 for a period of two years from the completion of the financing, subject to early expiry provisions as follows: Once resale restrictions on the Units have expired on July 24, 2007 and upon the Company's shares trading at or above a weighted average trading price of $0.90 for 20 consecutive trading days, the Company may give notice that the Warrants will expire 30 days from the date of providing such notice (in writing to Warrant holders and via a news release).

Bolder will receive a cash commission of 7.5% of the gross proceeds raised, of which Bolder has elected to receive 144,690 units at an ascribed value of $0.42 per unit in partial payment. Bolder will receive Agent's Warrants (the "Agents Warrants") entitling the Agent to purchase up to such number of common shares of the Company as is equal to 10% of the number of Units sold through the Offering, for a period of two years from the date of the closing of the Offering. Each Agent's Warrant will be exercisable into one (1) common share of the Company at $0.55.

Bolder will also be paid a work fee of $5,000 plus GST. The Company is responsible for all reasonable expenses incurred in connection with the Offering, including the Agent's out-of-pocket expenses, and fees and disbursements of the Agent's legal counsel.

All securities issued in this private placement are subject to an expiry date of July 24, 2007.

Net proceeds of this financing will be used for working capital for the Sinivit project, to fund a second drill at the Imwauna project and for general corporate purposes.

ON BEHALF OF THE BOARD

"Judith O'Quinn", CFO & Corporate Secretary

The statements made in this News Release may contain certain forward-looking statements. Actual events or results may differ from the Company's expectations. Certain risk factors may also affect the actual results achieved by the company.

The TSX Venture Exchange has not reviewed and does not accept the responsibility of the adequacy or accuracy of this release.

Contact Information

  • New Guinea Gold Corporation
    Judith O'Quinn
    CFO & Corporate Secretary
    (604) 662-3598
    (604) 669-6257 (FAX)
    Website: www.newguineagold.ca