Oro Gold Resources Ltd.

Oro Gold Resources Ltd.

June 16, 2009 09:16 ET

Oro Gold Announces $8 Million Private Placement

VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 16, 2009) -


Oro Gold Resources Ltd. ("Oro Gold" or the "Company") (TSX VENTURE:OGR) announces that it has entered into an agreement with a syndicate of underwriters (the "Underwriters") led by Wellington West Capital Markets Inc., to sell 5,715,000 units ("Units") at a price of $0.70 per unit for gross proceeds of $4,000,500 on an underwritten private placement basis (the "Offering"). Each unit will consist of one common share and one-half common share purchase warrant; each whole warrant will entitle the holder to purchase one additional common share at an exercise price of $1.00 per share for 18 months from the date of closing. The units issued will be subject to a four-month hold period from the closing date.

The Underwriters shall also have the option exercisable up to 48 hours prior to closing to increase the size of the Offering by up to an additional 5,715,000 Units (the "Underwriters' Option"), for aggregate gross proceeds under the Offering of $8,001,000 if the Underwriters' Option is exercised in full.

The Company intends to use the net proceeds of the private placement for additional exploration and development on the Company's 100% owned Trinidad gold property in Mexico and for working capital and general corporate purposes. The private placement is expected to close on or about July 7 2009 and is subject to applicable regulatory approvals.

About Oro Gold

Oro Gold is a publicly-listed junior gold exploration company with 11 properties located in Mexico and Panama. The district-scale Trinidad property continues to be the Company's top priority project and the main focus of exploration and resource definition efforts. Oro Gold's corporate mandate is to maintain low costs in gold resource acquisition and discovery while growing the Company's gold assets to attract producing companies.


Darren Bahrey, President and CEO

Some statements in this release may contain forward-looking information. These statements include, but are not limited to, statements with respect to the anticipated closings of financing, the intended use of proceeds, future exploration, development and production activities and future expenditures. These statements address future events and conditions and, as such, involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the statements. Such factors include, among others, the timing and completion of financings, the actual use of proceeds, the time and success of future exploration, development and production activities and the timing and amount of expenditures.

Neither the TSX Venture Exchange nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release.

Contact Information