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TORONTO, ONTATIO--(Marketwire - April 5, 2011) -
NOT FOR DISTRIBUTION IN THE UNITED STATES OR TO U.S. NEWSWIRE SERVICES
Plato Gold Corp. (TSX VENTURE:PGC) ("Plato" or the "Company") an exploration company with a portfolio of properties in significant gold mining camps in Northern Ontario, Northern Quebec, and Santa Cruz, Argentina is pleased to announce that it closed the first tranche of its non-brokered private placement offering (the "Offering") previously announced on March 14, 2011. Pursuant to the Offering, for the first closing, the Company issued 6,900,000 Units (the "Units") at a price of $0.05 per Unit for gross proceeds of up to $345,000.
Each Unit shall be comprised of one common share in the capital of the Company (a "Common Share") and one Common Share purchase warrant (a "Warrant"). Each Warrant shall entitle its holder to acquire one Common Share at an exercise price of $0.10 per share for a period of 24 months from the date of closing.
The Company will use the proceeds from the Offering for work on its Lolita Property in Santa Cruz, Argentina and on its Nordeau East Property in Val d'Or, Quebec, as well as for working capital and general corporate purposes.
As announced on March 14, 2011 the maximum Offering consists of a non-brokered private placement whereby the Company will offer up to 16,000,000 units (the "Units") at a price of $0.05 per Unit for gross proceeds of up to $800,000.
Assuming completion of the maximum Offering, there will be 139,191,655 common shares of the Company issued and outstanding (214,856,591 common shares on a fully diluted basis).
The Company paid finders' fees in respect of purchases totalling $24,150 cash commission and the issuance of 483,000 warrants to acquire common shares of the Company for a period of 24 months from the date of closing of the Private Placement at an exercise price of $0.08 per share. Each warrant is exchangeable for one common share of the Company.
Mr. Anthony Cohen, President and CEO of Plato Gold, stated "I am very pleased to close the first tranche of our private placement as this will enable the company to advance with our work programs in both Santa Cruz, Argentina and in Val d'Or, Quebec".
The final Offering is expected to close on or about April 25, 2011 or such other date or dates as the Company may determine in its discretion. Closing of the offering is subject to receipt of all required regulatory approvals, including final approval of the TSX Venture Exchange. All of the securities issued pursuant to this offering will have a hold period expiring four months after the closing date.
About Plato Gold Corp.
Plato Gold Corp. is a Canadian gold exploration company listed on the TSX Venture Exchange with exploration projects in Northern Ontario, Northern Quebec and the Lolita Property in the province of Santa Cruz, Argentina.
The Northern Ontario project includes 5 properties: Guibord, Harker, Harker-Garrison, Holloway and Marriott in the Harker/Holloway gold camp located east of Timmins, Ontario. In November 2010, Plato signed an agreement granting St Andrew Goldfields Ltd. the option to earn a 75% interest in four of the above properties.
The Northern Quebec project includes 7 properties: Nordeau Bateman, Vauquelin, Vauquelin Pershing, Vauquelin Horseshoe, Pershing Denain, Hop O'My Thumb and Vauquelin II. All 7 properties are located near Val d'Or, Quebec. In November 2010, Plato signed an agreement granting Threegold Resources Inc. the option to earn a 75% interest in two of the above properties.
Plato is in the advanced exploration stage on the Nordeau West site with a NI 43-101 compliant gold resource reported on March 12, 2009. Highlights of the Nordeau West mineral resource update include:
indicated resources of 30,212 oz Au on average grade of 4.17 g/t and 225,342 tonnes; and
inferred resources of 146,315 oz Au on average grade of 4.09 g/t and 1,112,321 tonnes.
In Argentina, the Lolita Property is comprised of 3 contiguous concessions and initial work has been started on this property. For additional company information, please visit: http://www.platogold.com/">www.platogold.com.
