Plato Gold Corp.
TSX VENTURE : PGC

Plato Gold Corp.

March 06, 2007 09:00 ET

Plato Gold Corp. Announces Completion of $400,000 Private Placement With MineralFields Group to Continue Exploration of Nordeau Gold Project

TORONTO, ONTARIO--(CCNMatthews - March 6, 2007) -

NOT FOR DISTRIBUTION IN THE UNITED STATES.

Plato Gold Corp (TSX VENTURE:PGC) is pleased to announce completion of a non-brokered private placement for gross proceeds of $400,000 which was previously announced on February 12, 2007. The private placement consisted of the sale of 2,727,270 flow-through units at a price of $0.11 per unit for gross proceeds of $300,000, and 1,000,000 hard dollar units at a price of $0.10 per unit for gross proceeds of $100,000.

Each flow-through unit consists of one flow-through common share and one non-flow through common share purchase warrant. Each warrant entitles the holder to acquire one hard dollar common share for $0.20 until February 19, 2008, and thereafter for $0.30 until February 19, 2009, at which time the warrants expire.

Each hard dollar unit consists of one common share and one common share purchase warrant. Each warrant entitles the holder to acquire one hard dollar common share for $0.15 until February 19, 2008, and thereafter for $0.25 until February 19, 2009, at which time the warrants expire.

All securities issued in conjunction with the offering are subject to a four-month hold period, which expires on June 20, 2007. In conjunction with this financing, cash finder's fees totaling $20,000 were paid, and compensation options were issued to acquire a total of 372,727 units exercisable at $0.10 per unit until February 19, 2009. Each compensation unit entitles the holder to acquire one hard dollar common share for $0.15 until February 19, 2008, and thereafter for $0.25 until February 19, 2009. Proceeds of the financing will be used to fund further exploration on the Nordeau Gold Project, details of which are available at www.sedar.com.

The units, aggregating 3,727,270 in total, were acquired by investors and limited partnerships administered by MineralFields Group. Plato Gold now has 41,436,289 shares issued and outstanding and 54,430,611 shares fully diluted.

ABOUT MINERALFIELDS GROUP

MineralFields Group (a division of Pathway Asset Management) is a Toronto-based mining fund with significant assets under administration that offers its tax-advantaged super flow-through limited partnerships to investors throughout Canada during most of the calendar year, as well as hard-dollar resource limited partnerships to investors throughout the world. Information about the MineralFields Group is available at www.mineralfields.com.

Cautionary Statements

This news release contains "forward-looking statements", within the meaning of the United States Private Securities Litigation Reform Act of 1995 and similar Canadian legislation, concerning the business, operations and financial performance and condition of Plato. Forward-looking statements include, but are not limited to, statements with respect to the benefits of the offering and option transaction. Generally, these forward-looking statements can be identified by the use of forward-looking terminology 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 state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Forward-looking statements are based on the opinions and estimates of management as of the date such statements are made, and they are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Plato to be materially different from those expressed or implied by such forward-looking statements, including but not limited to risks related to: raising less than the required amount; not realizing on the anticipated benefits from the transaction or not realizing on such anticipated benefits within the expected time frame; risks related to exploration; actual resource viability, and other risks of the mining industry. Although management of Plato has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. Plato does not undertake to update any forward-looking statements that are incorporated by reference herein, except in accordance with applicable securities laws.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release.

Contact Information

  • Plato Gold Corp.
    Mr. Anthony Cohen
    President and Chief Executive Officer
    (416) 968-0608
    (416) 968-3339 (FAX)
    or
    Plato Gold Corp.
    Suite 300, 1300 Bay Street
    Toronto, Ontario M5R 3K8