New Guinea Gold Corporation

New Guinea Gold Corporation

April 19, 2007 18:36 ET

New Guinea Gold Closes Second Tranche of Its 12 Million Unit Private Placement

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - April 19, 2007) - New Guinea Gold Corporation (" NGG" or the "Company") (TSX VENTURE:NGG) announces that it has closed the second 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 of the private placement formally closed with the issuance of 10,112,500 Units for gross proceeds of $4,247,250 and was announced in a press release dated March 23, 2007. Gross proceeds from the second tranche amount to $792,750 with the issuance of 1,887,500 units.

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 second tranche Units have expired on August 20, 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 44,018 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 187,000 common shares of the Company, for a period of two years from the date of the closing of the Offering, April 19, 2007. Each Agent's Warrant will be exercisable into one (1) common share of the Company at $0.55.

All securities issued in the second tranche of this private placement are subject to resale restrictions expiring August 20, 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.


"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.

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