PC Gold Inc.

PC Gold Inc.

January 09, 2014 08:07 ET

PC Gold Completes Private Placement of Senior Secured Debentures

TORONTO, ONTARIO--(Marketwired - Jan. 9, 2014) - PC Gold Inc. (TSX:PKL) ("PC Gold" or the "Company") wishes to announce that it has completed a non-brokered private placement financing through the issuance to arm's length lenders of $600,000 principal amount of senior secured debentures of the Company (the "Debentures"), at an aggregate purchase price and gross proceeds of $500,000 (the "Offering"). The Debentures bear interest at a rate of 4.0% per annum, payable quarterly in arrears, and have a maturity date of July 8, 2015. The Company's obligations under the Debentures are direct secured obligations of the Company ranking senior to all indebtedness of the Company, subject to certain permitted encumbrances. As additional consideration for their loans, the lenders were also issued an aggregate of 2,000,000 common shares in the capital of the Company (the "Bonus Shares").

The funds raised from the Offering will be used for general corporate and working capital purposes to enable the Company to continue to seek additional financing or strategic transactions for the development of its Pickle Crow gold project.

The Debentures and Bonus Shares are subject to a hold period that will expire on May 9, 2014. The Offering remains subject to the final approval of the TSX.

The securities described herein have not been and will not be registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States or to a U.S. person absent an exemption from the registration requirements of such Act.

The Toronto Stock Exchange does not accept responsibility for the adequacy or accuracy of this release.

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