2008-08-20 15:51 ET - News Release
Mr. Gregory Hawkins reports
TAGISH PROPOSED PRIVATE PLACEMENT
Tagish Lake Gold Corp.'s board of directors has accepted an offer of financing from investors, including Yukon-Shaanxi Mining Company Inc. According to the terms of the letter agreement, the investors will invest $5-million in Tagish, through private placements of 100 million units at five cents per unit. Each unit will consist of one common share plus one-quarter of one common share warrant, with each full warrant entitling the holder to purchase an additional common share at 7.5 cents per share.
The acquisition of the units will require that Tagish receive the requisite level of approval from its shareholders. To that end, a special meeting of Tagish shareholders will be held at the offices of Pacific Corporate Trust, in Vancouver, on Sept. 24, 2008, to approve the investment. The private placement is also conditional on obtaining all necessary regulatory approvals.
On closing, expected within 10 days after shareholder approval, the investors will be entitled to appoint directors to the board of directors of Tagish. Any changes to the board of Tagish are subject to the approval of the TSX Venture Exchange.
The investors will provide $200,000 in interim financing to allow the company to meet continuing needs during the period before the special meeting. On closing, the private placement will provide the company with money to redress its financial situation and to move forward.
Macquarie Bank Ltd. has provided the company with a written extension to the waiver with respect to financial and other covenants effective until Sept. 30, 2008, pursuant to the company's interest-bearing $1.5-million secured feasibility finance facility originally reported in Stockwatch on June 11, 2007.
