Pelangio Exploration Inc.
TSX VENTURE : PX

Pelangio Exploration Inc.

March 02, 2009 09:00 ET

Pelangio Exploration Closes Private Placement

TORONTO, ONTARIO--(Marketwire - March 2, 2009) - Pelangio Exploration Inc. (TSX VENTURE:PX)

NOT FOR DISSEMINATION IN THE UNITED STATES

Pelangio Exploration Inc. (TSX VENTURE:PX) ("Pelangio" or the "Company") is pleased to announce that it has closed a non-brokered private placement for aggregate gross proceeds of $1,195,000 (the "Private Placement"). The Private Placement comprised placements of (i) 1,100,000 flow-through common shares (the "FT Shares") for proceeds of $110,000 at a price of $0.10 per FT Share (the "FT Placement"), and (ii) 10,850,000 Units (as defined below) for proceeds of $1,085,000 at a price of $0.10 per Unit (the "Warrant Placement"). Each Unit comprised one common share of the Company and one common share purchase warrant, pursuant to which the holder thereof is entitled to purchase one common share of the Company for a purchase price of $0.20 prior to the earlier of: (i) the 30th day after receiving notice from Pelangio that the volume weighted average price of the common shares has been equal to or greater than $0.40 for a period of twenty (20) consecutive trading days, and (ii) February 27, 2011. The FT Shares and Units are subject to customary securities legislation hold periods and will not be freely tradable until June 27, 2009.

Pelangio will use the proceeds of the FT Placement primarily to fund exploration of its Birch Lake property in the Red Lake region of northern Ontario, as well as exploration of its Page Lake property in Hemlo, Ontario. The proceeds of the Warrant Placement will be used for general corporate purposes and to fund exploration of the Company's properties in Ghana and Canada.

Sprott Asset Management Inc., as portfolio manager for various funds, purchased 2,500,000 Units under the Warrant Placement.

The Company has agreed to pay finders' fees totaling $39,200 to certain arms-length persons in connection with the closing of the Private Placement.

The TSX Venture Exchange conditionally approved for listing the common shares issued under the FT Placement and Warrant Placement on February 27, 2009.

About Pelangio

Pelangio is a gold exploration company active in the top-ranked mining jurisdictions in the world, Canada and Ghana. The Company's main focus is to advance its exploration programs on its premier land position in Ghana totaling 290 square kilometres, located on strike and adjacent to AngloGold Ashanti's Obuasi gold mine.

Forward Looking Statements

Certain statements herein may contain forward-looking statements and forward-looking information within the meaning of applicable securities laws. Forward-looking statements or information appear in a number of places and can be identified by the use of words such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate" or "believes" or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. With respect to forward-looking statements and information contained herein, we have made numerous assumptions. Forward-looking statements and information include statements regarding our proposed plans in respect of the use of the funds raised under the Private Placement and our exploration plans with respect to our Obuasi and Birch Lake properties, and are subject to forward-looking risks, uncertainties and other factors which may cause our actual results, performance or achievements, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statement or information. Such risks include gold price volatility, changes in equity markets, political developments in Ghana, increases in costs, exchange rate fluctuations and other risks involved in the gold exploration industry. See the annual information form and management information circular dated March 19, 2008 of PDX Resources Inc. (formerly Pelangio Mines Inc.) and our quarterly management's discussion and analysis for additional information on risks and uncertainties relating to the forward-looking statement and information. There can be no assurance that a forward-looking statement or information referenced herein will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements or information. Also, many of the factors are beyond the control of Pelangio. Accordingly, readers should not place undue reliance on forward-looking statements or information. We undertake no obligation to reissue or update any forward looking statements or information except as required by law. All forward-looking statements and information herein are qualified by this cautionary statement.

Neither 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.

Contact Information

  • Pelangio Exploration Inc.
    Ingrid Hibbard
    President & CEO
    (905) 875-3828 or Toll Free: 1-877-746-1632
    or
    Pelangio Exploration Inc.
    Brendan Cahill
    Counsel and Corporate Secretary
    (905) 875-3828 or Toll Free: 1-877-746-1632
    (905) 875-3829 (FAX)
    Email: info@pelangio.com
    Website: www.pelangio.com