Oro Gold Resources Ltd.
TSX VENTURE : OGR

Oro Gold Resources Ltd.

December 18, 2007 09:00 ET

Oro Gold Closes Non-Brokered Private Placement

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 18, 2007) - Oro Gold Resources Ltd. ("Oro Gold") (TSX VENTURE:OGR) has completed an over-subscribed non-brokered private placement announced November 16, 2007, for gross proceeds of $2,427,449.25.

3,236,599 units were issued at $0.75 per unit, with each unit consisting of one common share and one-half of one common share purchase warrant, each whole warrant entitling the holder to purchase one additional common share of Oro Gold at a price of $1.00 per share for the first year and $1.25 per share for the second year after the date of issuance. The Units issued are subject to a four-month hold period and may not be traded until April 19, 2008 except as permitted by Canadian securities legislation and the TSX Venture Exchange. Finder's fees were paid in connection with certain subscriptions under the financing.

Ronald Ewing, a director of Oro Gold, acquired an aggregate of 75,000 Units as a subscriber under the private placement. No commission or finders' fee was paid for his participation. The participation by an insider in the private placement is considered to be a "related party transaction" as defined under Ontario Securities Commission Rule 61-501 (the "Rule"). The transaction is exempt from the formal valuation and minority shareholder approval requirements of the Rule as neither the fair market value of the securities being issued nor the consideration being paid exceeds 25% of Oro Gold's market capitalization.

Oro Gold intends to use the proceeds of the private placement to define and expand the current gold resource at its 100% owned flagship Trinidad property located in Sinaloa, Mexico. The company is aggressively advancing the property with drilling.

About Oro Gold

Oro Gold is a gold exploration company with 13 projects located in Mexico and Panama, with five of the projects optioned to joint venture partners. The district-scale Trinidad property continues to be the company's top priority project and the main focus of exploration and resource definition efforts. Ongoing generative activity and a joint venture strategy will continue to be a fundamental part of Oro Gold's growth.

ON BEHALF OF THE BOARD OF DIRECTORS

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 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 time and success of future exploration, development and production activities and the timing and amount of expenditures.

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

Contact Information

  • Oro Gold Resources Ltd.
    Darren Bahrey
    President and CEO
    (604) 646-1580
    (604) 642-2411 (FAX)
    Website: www.orogoldresources.com