Terraco Gold Corp.
TSX VENTURE : TEN

Terraco Gold Corp.

October 06, 2010 07:00 ET

Terraco Closes $1,750,000 Private Placement

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 6, 2010) -

THIS NEWS RELEASE IS NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

Terraco Gold Corp. (TSX VENTURE:TEN) (the "Company") is pleased to announce the closing of its previously announced non-brokered private placement (the "Private Placement") of 17,500,000 units (the "Units") at a price of CAN$0.10 per Unit, for total gross proceeds of CAN$1,750,000. Each Unit is 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 its common shares have closed for 20 consecutive trading days at a price of CAN$1.00 or greater. Net proceeds from the Private Placement will be used for exploration purposes and general working capital requirements.

All securities issued or issuable under the Private Placement are subject to a four-month hold period expiring on February 7, 2010.

In addition, the Company also announces that it granted today 700,000 incentive stock options to a director and officer of the Company pursuant to its Stock Option Plan. These options will be exercisable at a price of $0.35 per share and will expire on October 6, 2013.

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.

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)
    www.terracogold.com