Oro Gold Resources Ltd.

Oro Gold Resources Ltd.

July 07, 2009 17:13 ET

Oro Gold Completes $12 Million Private Placement

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 7, 2009) -


Oro Gold Resources Ltd. ("Oro Gold" or the "Company") (TSX VENTURE:OGR) is pleased to announce that it has closed its private placement financing previously announced on June 17, 2009 (the "Offering"). The Company issued 17,200,000 units of the Company for aggregate gross proceeds of $12,040,000. Each unit, priced at $0.70, consists of one common share and one-half of one common share purchase warrant; each whole warrant entitles the holder to purchase one additional common share of the Company at an exercise price of $1.00 until January 7, 2011.

The Company intends to use the net proceeds of the Offering for additional exploration and development on the Company's 100% owned Trinidad gold property in Mexico and for working capital and general corporate purposes.

Wellington West Capital Markets Inc. acted as lead underwriter and book-runner on behalf of a syndicate of underwriters including Canaccord Capital Corporation and Blackmont Capital Inc. (collectively, the "Underwriters"). The Company paid a cash commission to the Underwriters in the amount of $772,800 and issued to the Underwriters 1,104,000 warrants, each exercisable to acquire one common share of the Company at a price of $0.70 until January 7, 2011.

The common shares issued pursuant to the Offering and the common shares issuable upon the exercise of the warrants are subject to a statutory hold period which expires November 8, 2009.

About Oro Gold

Oro Gold is a publicly-listed junior gold exploration company with 11 projects located in Mexico and Panama. The district scale 651 km2 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 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.

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 release.

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