TintinaGold Resources Inc.

TintinaGold Resources Inc.

March 02, 2011 15:54 ET

TintinaGold Closes First Tranche of Private Placement

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 2, 2011) -


TintinaGold Resources Inc. (TSX VENTURE:TAU) ("TintinaGold" or the "Company") announces that it has completed the first tranche of the non-brokered private placement of common shares previously announced in the Company's February 10, 2011 news release.

The first tranche was placed with Quantum Partners LP ("Quantum"), a private investment fund managed by Soros Fund Management LLC, and Electrum Strategic Metals II LLC ("Electrum"), an entity controlled by Electrum Strategic Metals LLC.

The Company issued 21,792,762 common shares to Quantum for proceeds of approximately $13.8 million. After completion of the first tranche of the private placement, Quantum holds a total of 21,792,762 common shares which represents approximately 19.8% of the Company's outstanding shares.

The Company issued 3,995,340 common shares to Electrum for proceeds of approximately $2.5 million. After the completion of the first tranche of the private placement, Electrum Strategic Metals LLC holds, directly and indirectly, a total of 30,454,868 common shares which represents approximately 27.7% of the Company's outstanding shares. Electrum Strategic Metals LLC also holds warrants to purchase an additional 18,280,165 common shares.

The Company expects the second and final tranche of the private placement to be completed following approval by the Company's shareholders of the creation of a new control person at the annual and special general meeting of the Company scheduled for March 15, 2011.

The common shares issued in the first tranche of the private placement are subject to a hold period and may not be traded until July 3, 2011 pursuant to applicable Canadian securities laws and the policies of the TSX Venture Exchange.

The proceeds of the private placement will be allocated to fund on-going exploration, environmental baseline work and feasibility studies at the Company's Sheep Creek property located in Montana, USA, and for general working capital.

The common shares have not been and will not be registered under the United States Securities Act of 1933, as amended, or any state securities laws and may not be offered in the United States, except pursuant to exemptions from such registration requirements. This press release does not constitute an offer to buy any securities in the United States or in any jurisdiction in which such offer would be unlawful.

About TintinaGold

TintinaGold is a growth company focused on the exploration and development of precious and base metal properties around the world. The Company's experienced Board of Directors and Management Team having completed the verification drilling on the Sheep Creek copper-cobalt massive sulfide property in Montana, U.S.A. are focused on additional exploration drilling and advancing the project towards production. The Company is also exploring an impressive portfolio of gold and base metal projects in Alaska, including the Colorado Creek gold project located in southwest Alaska in the same region as the 40 million ounce Donlin Creek project and the Kugruk copper-iron-gold prospect in northwest Alaska.

The growth and success of the Company comes from TintinaGold's experienced exploration team and its ability to forge collaborative relationships and partnerships with Native Alaskan and First Nations groups, local communities, major mining companies and regulators.

About Sheep Creek

The Sheep Creek deposit is located about 27 km north of White Sulphur Springs along a well maintained gravel road and within two miles of U.S. Highway 89. The Sheep Creek property consists of approximately 5,775 acres of fee simple lands and mining claims in central Montana. The property contains sediment hosted zones of massive sulfide mineralization originally explored by Cominco American Inc. and BHP during the 1980's and early 1990's. The drilling undertaken by Cominco American Inc. and BHP had encountered significant zones of strata-bound copper sulfide with cobalt in multiple bedded pyrite zones in the lower part of the Precambrian Belt Supergroup; this same stratigraphic unit hosts the Sullivan zinc-lead-silver deposit. The Company in a short time has been able to complete an Inferred Resource on the Upper Copper Zone.

Website: www.tintinagold.com


Raj Chowdhry, C.A., President & CEO

Cautionary Note Regarding Forward-Looking Statements: Certain disclosure in this release, including statements regarding the completion of a second tranche of a private placement of common shares of the Company (the "Offering"), the approval of a new control person by the shareholders of the Company and the use of proceeds from the Offering, constitutes "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 and "forward-looking information" within the meaning of Canadian securities legislation. In making the forward-looking statements in this release, the Company has applied certain factors and assumptions that the Company believes are reasonable, including that the Company is able to obtain regulatory approval of the Offering and regulatory and shareholder approval of the creation of a new control person and is otherwise able to complete the second tranche of the Offering and that actual results of the Company's exploration activities will be consistent with those expected by management. However, the forward-looking statements in this release are subject to numerous risks, uncertainties and other factors relating to the Offering and to TintinaGold's operation as a mineral exploration company that may cause future results to differ materially from those expressed or implied in such forward-looking statements. Such uncertainties and risks include, among others, financing risks, regulatory risk, actual results of the Company's exploration activities being different than those expected by management, delays in obtaining or inability to obtain required government or other regulatory or shareholder approvals and inability to complete the Offering. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Readers are cautioned not to place undue reliance on forward-looking statements. TintinaGold does not intend, and expressly disclaims any intention or obligation to, update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required by law.

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.

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