Terraco Gold Corp.

Terraco Gold Corp.

September 09, 2010 07:00 ET

Terraco Announces $1,750,000 Private Placement to Fund Growth

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 9, 2010) -


Terraco Gold Corp. (TSX VENTURE:TEN) (the "Company") is pleased to announce a non-brokered private placement (the "Private Placement") of up to 17,500,000 units (the "Units") at a price of CAN$0.10 per Unit, for total gross proceeds of up to CAN$1,750,000. Each Unit will be comprised of one common share of the Company (a "Share") and one non-transferable share purchase warrant (a "Warrant"). Each Warrant will entitle the holder to purchase one additional Share for a period of 24 months from the date of issuance at a price of CAN$0.20. The expiry date of the Warrants may be accelerated, at the sole option of the Company, to 21 business days following the date on which the Company gives notice that it's common shares have closed for 20 consecutive trading days at a price of CAN$1.00 or greater. No finders' fees or commissions will be payable. Net proceeds from the Private Placement will be used for exploration purposes and general working capital requirements.

Terraco is a mineral exploration company, listed on the TSX Venture Exchange under the symbol "TEN". Please visit Terraco's website at www.terracogold.com for additional information.

Forward-Looking Statements

This news release contains forward-looking statements. More particularly, this news release contains statements concerning the anticipated Offering and anticipated use of the net proceeds of the Offering. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, undue reliance should not be placed on them because the Company can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. The closing of the Offering could be delayed if the Company is not able to obtain the necessary regulatory and stock exchange approvals on the timelines it has planned. The Offering will not be completed at all if these approvals are not obtained or some other condition to the closing is not satisfied. Accordingly, there is a risk that the Offering will not be completely sold, completed within the anticipated time or at all. The specific intended use of the net proceeds of the Offering by the Company might change if the board of directors of The Company determines that it would be in the best interests of the Company to deploy the proceeds for some other purpose, and which may be subject to various risks including risks associated with international mining, commodity price fluctuations, political and economic changes, fluctuations in foreign currency, exploration and development, mining permits and licenses, delays resulting from or inability to obtain required regulatory approvals and ability to access sufficient capital from internal and external sources. As a consequence, actual results may differ materially from those anticipated in the forward-looking statements. Readers are cautioned that the foregoing list of factors is not exhaustive. Additional information on these and other factors that could affect the Company's operations and financial results are included in reports on file with Canadian securities regulatory authorities and may be accessed through the SEDAR website (www.sedar.com).

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • Terraco Gold Corp.
    Todd Hilditch
    President and CEO
    604.443.3831 or Toll free: 1.877.792.6688
    604.682.3860 (FAX)