Novus Gold Corp.

Novus Gold Corp.

September 24, 2009 18:08 ET

Novus Gold Corp.: Novus Announces Brokered Private Placement With Canaccord Capital Corp.

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 24, 2009) - Novus Gold Corp. (NEX:NOV.H) is pleased to announce that it has negotiated a private placement with Canaccord Capital Corporation ("Canaccord") on a commercially reasonable efforts basis to sell up to 12,000,000 units at $0.20 per unit for gross proceeds of up to $2,400,000 (the "Offering"). Each unit will consist of one share and one half of one warrant, each whole warrant entitling the holder to purchase one additional share for $0.30 for a period of two years from closing. The proceeds will be used for property payments and work programs on the Company's mineral exploration properties in the Dominican Republic and the Northwest Territories, and for working capital.

The Company has also granted Canaccord an option to solicit an additional 1,250,000 units exercisable 48 hours prior to closing.

Canaccord will receive a cash commission equal to 7% of the gross proceeds raised,and that number of agent's warrants equal to 10% of the units sold, which will be issued on the same terms as the placement warrants. In addition, Canaccord will receive a corporate finance fee.

Closing of the Offering is subject to various conditions including the approval of the TSX Venture Exchange, which approval will be subject to the listing of the Company as a Tier 2 issuer on the Exchange.


Mike Magrum, President & CEO

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.

Contact Information

  • Novus Gold Corp.
    Gunther Roehlig
    (604) 688-0335
    (604) 683-7161 (FAX)