TORONTO, March 2 - Carpathian Gold Inc (TSX: CPN.TO) (the "Corporation") announces that it has entered into an agreement to issue on a "bought deal", basis with Jennings Capital Inc., as lead underwriter and Clarus Securities Inc. as underwriter (collectively the "Underwriters"), a private placement offering (the "Offering") of 11,000,000 Units of the Corporation at a price of $1.00 per unit for gross proceeds of $11,000,000. Each Unit comprises one (1) common share in the capital of the Corporation (a "Common Share") and one half (1/2) of one Common Share purchase warrant. Each full warrant entitles the holder thereof to acquire one Common Share at a price of Cdn $1.30 for 16 months after closing.
Under the terms of the agreement, an aggregate of 715,000 compensation options are payable to the underwriters. Each compensation option entitles the holder thereof to purchase one Common Share at a price of $1.00 per share for 16 months after closing. The Corporation will also pay cash commissions to the Underwriters representing 6.5% of the total gross proceeds of the Offering.
All securities issued in connection with the Offering are subject to a four (4) month plus one day hold period from the date of issuance. After giving effect to the Offering, and assuming no exercise of the Warrants, the Corporation will have 120,862,981 Common Shares issued and outstanding.
The net proceeds of the Offering will be used primarily for exploration work on the Corporation's Romanian License and for working capital purposes. Principally the exploration work will be on the Rovina License, located in central Romania, where the Corporation has defined two large gold + copper porphyry systems within 2.5 km of one another.
This Offering is subject to regulatory approval and completion of definitive documentation.
This News Release is not for dissemination in the United States or to any United States News Services. The common shares of Carpathian Gold Inc. have not and will not be registered under the United States Securities Act of 1933, as amended, (the "US Securities Act") or any state's securities laws and may not be offered or sold in the United States or to any US person except in certain transactions exempt from the registration requirements of the US Securities Act and applicable state securities laws.
The Corporation is a Canadian mineral exploration company focused on gold exploration on its properties in Romania and Hungary.
The TSX does not accept responsibility for the adequacy or accuracy of this news release.
Contacts
Dino Titaro
President & CEO
or Mike O'Brien
Manager Investor Relations
Tel. (416) 368-7744 (CAN)
Fax. (416) 260-2243 (CAN)
e-mail: info@carpathiangold.com
Website: www.carpathiangold.com
Eric Leboeuf
Investor Relations
Montreal
Tel. (514) 341-0408 or 1-866-460-0408
Fax. (514) 341-1527
e-mail: ericleboeuf@paradox-pr.ca
Paul Hilton
Investor Relations
U.K.
Tel. +44-207-881-0180
Fax. +44-0207-881-0181
e-mail: philton@chiliogon.com
