VANCOUVER, Feb. 27, 2008 (Canada NewsWire via COMTEX) -- /NOT FOR DISTRIBUTION TO US NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE
UNITED STATES/
Evolving Gold Corp. (TSX-V: EVG) (OTCBB: EVOGF) (FSE:EV7) (the "Company") is pleased to announce that it closed its previously announced brokered private placement with PI Financial Corp. (the "Agent") for $18,000,000 (the "Brokered Private Placement") and its previously announced non-brokered private placement of $2,000,000 (the "Non-Brokered Private Placement"). Proceeds from the Brokered Private Placement and the Non-Brokered Private Placement will be used for the further development of the Company's Wyoming, New Mexico and Nevada properties, to provide initial funding for the new precious metals company, and for general corporate purposes.
Brokered Private Placement
The Brokered Private Placement consisted of the issuance of 18,000,000 units ("Units") at a price of $1.00 per Unit. Each Unit consisted of one common share ("Share") and one-half of one common share purchase warrant. Each whole warrant entitles the holder thereof to purchase one additional Share (a "Warrant Share";) of the Company at an exercise price of $1.50 per Warrant Share until February 27, 2010.
The Company paid the Agent a commission of $4,500 and 1,165,500 Units, which in combination is equal to 6.5% of the gross proceeds of the Units sold under the Brokered Private Placement. In addition, the Agent received 1,260,000 agent's warrants, equal in number to 7% of the number of Units sold under the Brokered Private Placement, which will entitle the Agent to purchase one Share at an exercise price of $1.25 per Share until February 27, 2010.
Non-Brokered Private Placement
The Non-Brokered Private Placement consisted of the issuance of 2,000,000 units ("Units") at a price of $1.00 per Unit. Each Unit consisted of one common share ("Share") and one-half of one common share purchase warrant. Each whole warrant entitles the holder thereof to purchase one additional Share (a "Warrant Share";) of the Company at an exercise price of $1.50 per Warrant Share until February 27, 2010.
The Company paid seven finders an aggregate commission of $39,130.00 and 62,790 Shares. In addition, the finders received an aggregate of 109,760 non-transferable finder's warrants, which will entitle the finders to purchase one Share at an exercise price of $1.25 per Share until February 27, 2010.
The securities issued under the Brokered Private Placement and the Non-Brokered Private Placement are subject to a four month hold period which will expire on June 28, 2008.
About Evolving Gold Corp.
