NFX Gold Inc.
TSX VENTURE : NFX

NFX Gold Inc.

August 17, 2007 17:36 ET

NFX Completes Financing

TORONTO, ONTARIO--(Marketwire - Aug. 17, 2007) -

NOT FOR DISSEMINATION IN THE UNITED STATES OF AMERICA

NFX GOLD INC. (TSX VENTURE:NFX) ("NFX" or the "Company") announces that, further to the Company's press releases dated August 9, 2007 and June 21, 2007, the Company has completed a non-brokered private placement (the "Private Placement") of 1,800,000 Flow-Through units of NFX (the "F-T Units") at a price of $0.25 per unit for total proceeds of $450,000. Pursuant to the Private Placement each F-T Unit consists of one common share issued on a "flow-through" basis under the Income Tax Act (Canada) and one half of one non-transferable share purchase warrant of the Company (the "Unit Warrants"). Each whole Unit Warrant has a term of 18 months and entitles the holder to purchase one non flow-through common share at a price of $0.40 per common share. Officers and directors of the Company participated in the Private Placement, subscribing for 456,000 F-T Units, representing an investment of $114,000. All of the securities issued pursuant to the Private Placement are subject to a hold period which expires December 18, 2007. The Private Placement is subject to regulatory approval.

In connection with the Private Placement the Company paid $27,120 as a finder's fee to Integral Wealth Securities Limited ("Integral"), an arm's length party, equal to 8% of the orders originated by Integral in connection with the Private Placement, and also issued to Integral 135,600 finder's fee share purchase warrants, entitling Integral to purchase an aggregate of 135,600 Units of the Company at a price of $0.25 per Unit at any time on or before February 17, 2009. Each Unit consists of one common share and one half of one non-transferable share purchase warrant of the Company. The terms of share purchase warrants are identical to the Unit Warrants issued pursuant to the Private Placement.

The net proceeds of the Private Placements will be used for NFX exploration, other than at the Larder Lake Properties, where Maximus Ventures Ltd. ("Maximus") is currently conducting a 10,000 metre drilling program pursuant to the NFX/Maximus $6 million option and joint venture agreement.

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

Contact Information

  • NFX GOLD INC.
    Thomas G. Larsen
    President and Chief Executive Officer
    (416) 360-8006
    or
    NFX GOLD INC.
    Jorge Estepa
    Vice President
    (416) 360-8006
    (416)361-1333 (FAX)
    Website: www.nfxgold.com