Ryan Gold Corp.

Ryan Gold Corp.

May 12, 2011 09:08 ET

Ryan Gold Announces Closing of C$52,275,000 Financing

TORONTO, ONTARIO--(Marketwire - May 12, 2011) -


Ryan Gold Corp. (TSX VENTURE:RYG)("Ryan Gold" or the "Company") is pleased to announce that it has closed the previously announced bought deal private placement (the "Offering") whereby a syndicate of underwriters co-led by GMP Securities L.P. and Dundee Securities Ltd. and including PowerOne Capital Markets Limited and Clarus Securities Inc. (collectively, the "Underwriters") purchased or arranged for substitute purchasers to purchase 15,000,000 units (the "Units") at a price of C$2.00 per Unit (which included the exercise in full of the Underwriters' option for up to an additional 5,000,000 Units) and 9,900,000 flow-through shares (the "Flow-Through Shares", together with the Units, the "Offered Securities") at a price of C$2.25 per Flow-Through Share. The aggregate gross proceeds to the Company from the Offering were C$52,275,000.

Each Unit consists of one common share in the capital of the Company (each a "Common Share") and one-half of one common share purchase warrant (each whole common share purchase warrant, a "Warrant"). Each Warrant entitles the holder thereof to purchase one Common Share (a "Warrant Share") at a price of $3.00 per Warrant Share (the "Exercise Price") for a period of 24 months following the closing of the offering. However, if for a period of 20 consecutive trading days between the date that is four months following the Closing Date and the expiry of the Warrant, the closing price of the Common Shares on the TSX Venture Exchange or such other stock exchange where the majority of the trading volume occurs, exceeds a 25% premium to the Exercise Price, the Company may, within 30 days of such an occurrence, give written notice to the holders of the Warrants that the Warrants will expire at 5:00 p.m. (Toronto time) on the 30th day following giving of such notice unless exercised by the holders prior to such date.

In connection with the Offering, the Underwriters received a cash commission equal to 6% of the gross proceeds raised from the Offering and also received broker warrants exercisable to acquire that number of Common Shares that is equal to 6% of the number of Offered Securities sold pursuant to the Offering at an exercise price of $2.00 per Common Share at any time on or before the date which is 24 months following the closing of the Offering.

The net proceeds received from the sale of the Units will be used to advance the Company's projects and for general working capital purposes. The gross proceeds received from the sale of the Flow-Through Shares will be used to advance the Company's projects located in the Yukon Territories.

All securities issued pursuant to the Offering, together with any underlying securities, are subject to a four month hold period expiring September 13, 2011.

The closing of the previously announced acquisition by the Company of properties from Shawn Ryan and 45127 Yukon Inc. (the "Acquisition") which occurred on Wednesday May 11, 2011 was a condition to the completion of the Private Placement. For further information about the Acquisition see the Company's press releases dated February 16, 2011, April 26, 2011 and May 11, 2011. Osisko Mining Corporation purchased 800,000 Common Shares at a price of $2.00 per Common Share in a non-brokered private placement which did not constitute part of the Private Placement at the time of closing of the Acquisition in order to maintain its pro rata ownership in the Company following the Acquisition.

This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States or to "U.S. Persons" ("U.S. Persons"). The securities have not been and will not be registered under the U.S. Securities Act, as such term is defined in Regulation S promulgated under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.

About Ryan Gold Corp.

Ryan Gold Corp. is an exploration company focussed on gold exploration primarily in the Yukon Territory, Canada. The Company is well funded and has a large land package of approximately 2,428 km2 comprised of 50 different properties. The company's flagship property is Ida Oro. During the summer of 2010 a soil sampling programme completed on Ida Oro revealed a significant, > 100 ppb Au, gold-in-soil anomaly over an area of 4 km by 1.2 km. The company plans to drill the anomaly during the 2011 field season after initially completing detailed mapping. In addition to Ida Oro the Company plans to embark on an aggressive and systematic exploration program on its other properties that will include approximately 24,500 line kilometres of airborne magnetic and radiometric surveys, collection of 85,000 soil samples and geological mapping of targets borne out of this campaign. Through this aggressive exploration program the company objective is to have at least three other projects drill ready for the 2012 exploration season.

This press release contains forwardlooking statements within the meaning of applicable securities legislation. Such statements include, without limitation, statements regarding the future exploration plans, business and financing plans, business trends,and the use of proceeds for the Offering. Although the Company believes that such statements are reasonable, it can give no assurances that such expectations will prove to be correct. Forwardlooking statements are typically identified by words such as: believe, expect, anticipate, intend, estimate, postulate and similar expressions, or are those, which, by their nature, refer to future events. The Company cautions investors that forwardlooking statements by the Company are not guarantees of future results or performance, and that actual results may differ materially from those in forwardlooking statements as a result of various factors, including, but not limited to, variations in the nature, quality and quantity of any mineral deposits that may be located, significant downward variations in the market price of any mineral that may be produced, the Company's inability to obtain any necessary permits, consents or authorizations required for its activities, to produce minerals from its properties successfully or profitability, to continue its projected growth, to raise the necessary capital or to be fully able to implement its business strategies. All of the Company's public disclosure filings may be accessed via www.sedar.com and readers are urged to review these materials, including any technical reports filed with respect to the Company's mineral properties. This press release is not, and is not to be construed in any way as, an offer to buy or sell securities in the United States.

Neither the 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

  • Ryan Gold Corp.
    Michael Skead, CEO
    1 416 482 9038