Newcastle Gold boosts bought deal to $18.5-million

2016-10-12 09:56 ET - News Release

Ms. Susan Muir reports

NEWCASTLE GOLD ANNOUNCES INCREASE TO BOUGHT DEAL OFFERING OF COMMON SHARES

Newcastle Gold Ltd., as a result of strong demand, has increased the size of its previously announced bought-deal offering to 22.5 million common shares at a price of 82 cents per common share for aggregate gross proceeds of approximately $18.5-million. The offering was made through a syndicate of underwriters led by TD Securities Inc.

Newcastle plans to use the net proceeds of the offering to finance exploration and development at its Castle Mountain project and for general working capital purposes.

The common shares to be issued under the offering will be offered by way of a short-form prospectus in all of the provinces of Canada and in the United States on a private-placement basis pursuant to exemptions from the registration requirements of the United States Securities Act of 1933, as amended.

The offering is scheduled to close on or about Nov. 1, 2016, and is subject to certain conditions, including, but not limited to, the receipt of all necessary regulatory and other approvals, including the approval of the TSX Venture Exchange and applicable securities regulatory authorities.

Newcastle has a 100-per-cent interest in the Castle Mountain property in San Bernardino county, California. An updated National Instrument 43-101 resource for the project was announced Dec. 2, 2015, which includes measured mineral resources of 17.4 million tonnes grading 0.86 gram per tonne gold containing 480,000 gold ounces, indicated mineral resources of 202.5 million tonnes grading 0.57 g/t gold containing 3.71 million gold ounces along with inferred mineral resources of 40.8 million tonnes grading 0.58 g/t gold and containing 760,000 gold ounces.

Ian R. Cunningham-Dunlop, PEng, the company's vice-president, exploration, is the designated qualified person for this news release within the meaning of NI 43-101. He has reviewed and verified that the technical information contained in this release is accurate and has approved of the written disclosure of the same.

We seek Safe Harbor.

© 2016 Canjex Publishing Ltd. All rights reserved.