Orko Gold Corporation

Orko Gold Corporation

November 01, 2005 17:10 ET

Orko Announces Private Placement of $4,000,000

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Nov. 1, 2005) - Orko Gold Corporation, ("Orko" or the "Company"), (TSX VENTURE:OK). Orko announces that it has arranged, subject to all necessary regulatory approvals, a non-brokered private placement for 10,000,000 units (the "Units") at a price of $0.40 per unit. Each unit consists of one common share and one-half of a transferable common share purchase warrant. Each whole share purchase warrant is exercisable into one additional common share at a price of $0.50 per share if exercised in the first year and at a price of $.60 per share if exercised in the second year after closing. The warrants will contain a forced exercise provision pursuant to which the exercise term of the warrants will be reduced to 30 days if, for ten consecutive trading days (the "Premium Trading Days") the average closing price of the Company's shares as traded on the TSX Venture Exchange is equal to or exceeds $1.00. The 30 day exercise period will commence after the 10th Premium Trading Day.

The Company will pay finder's fees in accordance with TSX Venture Exchange policies. The commission may be paid in cash or units having the same terms as the Units issued under the offering, at the election of the finders.

The use of proceeds will be for the Phase III drilling program on the Company's Mexican mineral properties and for general working capital.


Gary Cope, President

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

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