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TORONTO, ONTARIO--(Marketwire - Feb. 18, 2011) -
(All currency denominated in US dollars)
US GOLD CORPORATION (NYSE:UXG)(TSX:UXG) (the "Company" or "US Gold"), an exploration company focused on gold and silver in the United States and Mexico, announced today the pricing of its previously announced underwritten offering in the United States and Canada of 15 million shares of common stock at a price to the public of $6.50 per share (the "Offering Price") for aggregate proceeds of US$97.5 million (the "Offering"). The Company has also granted the underwriters an option to purchase up to 2.25 million additional share of Common Stock at the Offering Price within 30 days following the closing of the Offering to cover over-allotments, if any.
Robert R. McEwen, the Company's Chairman and CEO, purchased 3,050,000 shares representing approximately US$20 million. The underwriters will not receive a discount or commissions on shares purchased by Mr. McEwen.
Proceeds to the Company from the Offering, net of commissions and expenses, are expected to be approximately US$91.6 million (assuming the underwriters' over-allotment option is not exercised). The offering is expected to close on February 24, 2011.
US Gold intends to use the net proceeds from the Offering to complete feasibility study work and acquire long lead- time capital items for the El Gallo Project in Mexico, complete pre-feasibility and feasibility work at the Gold Bar Project in Nevada, continue ongoing aggressive exploration programs in Mexico and Nevada and for general corporate purposes.
Dahlman Rose & Company, LLC and GMP Securities L.P. are acting as joint book-runners for the Offering and Scotia Capital Inc. and Stifel Nicolaus and Co. are acting as co-managers for the Offering.
The offering is being made by way of a registration statement, which has been declared effective by the SEC, a base shelf prospectus and a prospectus supplement each of which has been filed with the SEC and each of the Provincial securities regulatory authorities in Canada, other than Quebec. A copy of the preliminary prospectus supplement incorporating the base shelf prospectus relating to the offering may be obtained by contacting the underwriters (as the addresses below), by accessing the SEC website, >www.sedar.com.
In the United States from:
Dahlman Rose & Company, LLC
Attn: Prospectus Dept.
1301 Avenue of the Americas, 44th Floor
New York, NY 10019
Phone: 212-702-4521
Fax: 212-920-2952
Email: ECM@dahlmanrose.com
GMP Securities L.P.
Attn: New Issues Department
145 King Street West, Suite 300
Toronto, Ontario M5H 1J8 Canada
Phone: 416-943-6130
Fax: 416-943-6134
Email: ECM@gmpsecurities.com
In Canada from:
GMP Securities L.P.
Attn: New Issues Department
145 King Street West, Suite 300
Toronto, Ontario M5H 1J8 Canada
Phone: 416-943-6130
Fax: 416-943-6134
Email: ECM@gmpsecurities.com
