Oro Gold Resources Ltd.
TSX VENTURE : OGR

Oro Gold Resources Ltd.

July 10, 2008 09:30 ET

Oro Gold Completes First Closing of Non-Brokered Private Placement

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 10, 2008) -

NOT FOR DISSEMINATION IN THE UNITED STATES OR THROUGH U.S. NEWSWIRES.

Oro Gold Resources Ltd. ("Oro Gold") (TSX VENTURE:OGR) has completed a first closing of a non-brokered private placement announced June 10, 2008. Under the first closing, Oro Gold issued 2.9 million units at a price of $0.55 per unit, for gross proceeds of $1.587 million. Oro Gold intends to complete a second closing of the previously announced private placement shortly.

Each unit consists 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 $0.75 per share for the first year and $1.00 per share for the second year after the date of issuance. The units issued are subject to a four-month hold period from the first closing date.

Finder's fees in the amount of $76,959.70 were paid in connection with certain subscriptions under the first closing of the private placement.

Darren Bahrey, a director of Oro Gold, acquired an aggregate of 40,000 units as a subscriber under the first closing of the private placement and, accordingly, insiders have increased their securityholdings in Oro Gold. No commission or finder's fee was paid for his participation.

Oro Gold intends to use the proceeds of the private placement to further define and expand the current gold resource at its 100%-owned flagship Trinidad property located in Sinaloa, Mexico, and for other corporate purposes and general working capital.

About Oro Gold

Oro Gold is a gold exploration company with 12 properties located in Mexico and Panama, with 5 of the properties 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. The company's mission is to build shareholder value by making discoveries and developing low-cost gold resources through early and advanced stage exploration.

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, future expenditures and future financings. 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, the timing and amount of expenditures and future financings.

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