Pilot Gold Inc.

TSX : PLG


Pilot Gold Inc.

April 02, 2014 08:31 ET

Pilot Gold Raises $20,000,160 Through Bought Deal Financing

VANCOUVER, BRITISH COLUMBIA--(Marketwired - April 2, 2014) -

NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE UNITED STATES

Pilot Gold Inc. (TSX:PLG) ("Pilot Gold" or the "Company") is pleased to announce that it has completed its previously announced bought deal financing for aggregate gross proceeds of C$20,000,160 (the "Offering").

Lead underwriters National Bank Financial Inc. and Scotiabank, along with Haywood Securities Inc., BMO Capital Markets, Canaccord Genuity Corp., CIBC World Markets Inc., Cormark Securities Inc., and Macquarie Capital Markets Canada Ltd. purchased, on a bought deal basis, 13,072,000 common shares of the Company ("Common Shares") at a price of C$1.53 per Common Share the ("Issue Price").

In addition, Pilot Gold has granted the Underwriters an option (the "Underwriters' Option") to acquire up to an additional 1,960,800 Common Shares exercisable at the Issue Price at any time until 30 days following the closing of the Offering to cover over-allotments, if any.

The net proceeds of the Offering will be used to fund the exploration and development of Pilot Gold's mineral projects in Nevada and Turkey and for general working capital purposes.

"Kinsley Mountain and TV Tower are Pilot Gold's cornerstone projects, and this funding will allow us to continue advancing exploration and development through major milestones and catalysts," said Matt Lennox-King, President & CEO, Pilot Gold. "We appreciate the strong support from our existing shareholders and welcome the new investors in Pilot Gold."

This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any state in which such offer, solicitation or sale would be unlawful. The offered securities have not been registered under the United States Securities Act of 1933, as amended (the "Securities Act") or any state securities laws, and may not be offered or sold to, any person in the United States absent registration or an applicable exemption from registration requirements.

ABOUT PILOT GOLD

Pilot Gold is a well-funded gold exploration company led by a proven technical team that continues to discover and define high-quality projects featuring strong grades, meaningful size and mining-friendly addresses. Our three key assets include interests in the Kinsley project in Nevada and the TV Tower and Halilaga projects in Turkey, each of which has the ability to become a foundational asset. We also have a pipeline of projects characterized by large land positions and district-wide potential that can meet our growth needs for years to come.

All statements in this press release, other than statements of historical fact, are "forward-looking information" with respect to Pilot Gold within the meaning of applicable securities laws, including statements with respect to the anticipated use of proceeds of the Offering, the likelihood of and timing for closing of the over-allotment option, continued discovery of projects and the grades, size and jurisdictions of such projects and the existing pipeline of projects. Forward-looking information is often, but not always, identified by the use of words such as "seek", "anticipate", "plan", "continue", "planned", "expect", "project", "predict", "potential", "targeting", "intends", "believe", "potential", and similar expressions, or describes a "goal", or variation of such words and phrases or state that certain actions, events or results "may", "should", "could", "would", "might" or "will" be taken, occur or be achieved. Forward-looking information is not a guarantee of future performance and is based upon a number of estimates and assumptions of management at the date the statements are made including, among others, assumptions about future prices of gold, copper, silver and other metal prices, currency exchange rates and interest rates, favourable operating conditions, political stability, obtaining governmental approvals and financing on time, obtaining renewals for existing licences and permits and obtaining required licences and permits, labour stability, stability in market conditions, availability of equipment, accuracy of any mineral resources, successful resolution of disputes and anticipated costs and expenditures. Many assumptions are based on factors and events that are not within the control of Pilot Gold and there is no assurance they will prove to be correct.

Such forward-looking information, involves known and unknown risks, which may cause the actual results to be materially different from any future results expressed or implied by such forward-looking information, including, regulatory delays, changes in project parameters as plans continue to be refined; current economic conditions; future prices of commodities; possible variations in grade or recovery rates; the costs and timing of the development of new deposits; failure of equipment or processes to operate as anticipated; the failure of contracted parties to perform; the timing and success of exploration activities generally; delays in permitting; possible claims against the Company or its joint venture partners; labour disputes and other risks of the mining industry; delays in obtaining governmental approvals, financing or in the completion of exploration as well as those factors discussed in the Annual Information Form of the Company dated March 14, 2014 in the section entitled "Risk Factors", under Pilot Gold's SEDAR profile at www.sedar.com.

Although Pilot Gold has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking information, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Pilot Gold disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise unless required by law.

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