Continental Gold Announces Closing of $86.3 Million Bought Deal Financing and Over-Allotment Option Exercise
TORONTO, ONTARIO (Marketwire - Dec. 4, 2012)
NOT FOR DISSEMINATION IN THE UNITED STATES OR THROUGH U.S. NEWSWIRES
Continental Gold Limited (TSX:CNL)(OTCQX:CGOOF) ("Continental" or the "Company") is pleased to announce that it has closed its previously announced bought deal offering (the "Offering") of 9,039,000 common shares (the "Common Shares") at a price of $9.55 per Common Share for aggregate gross proceeds of $86,322,450, including 1,179,000 Common Shares issued pursuant to the full exercise by the underwriters of the over-allotment option.
The Offering was conducted by a syndicate of underwriters led by Dundee Capital Markets and including Clarus Securities Inc., GMP Securities L.P., TD Securities Inc., RBC Capital Markets and BMO Capital Markets.
The net proceeds from the Offering will be used for the continued exploration and development of the Buriticá project and for general corporate purposes.
This news release does not constitute an offer to sell or a solicitation of an offer to buy the securities described herein in the United States. The securities described herein have not been and will not be registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States absent an exemption from the registration requirements of such Act.
About Continental Gold
Continental Gold Limited is an advanced-stage exploration and development company with an extensive portfolio of 100%-owned gold projects in Colombia. Spearheaded by a team with over 40 years of exploration and mining experience in Colombia, the Company is focused on advancing its high-grade Buriticá gold project to production.
Additional details on the Buriticá project and the rest of Continental's suite of gold exploration properties are available at www.continentalgold.com.
This press release contains or refers to forward-looking information under Canadian securities legislation, including statements regarding the use of proceeds of the Offering, and is based on current expectations that involve a number of business risks and uncertainties. Forward-looking statements are subject to significant risks and uncertainties, and other factors that could cause actual results to differ materially from expected results. Readers should not place undue reliance on forward-looking statements. Factors that could cause actual results to differ materially from any forward-looking statement include, but are not limited to, the need to reallocate the use of proceeds of the Offering due to changes in the exploration and development plans for the Buriticá project, failure to convert estimated mineral resources to mineral reserves, capital and operating costs varying significantly from estimates, the preliminary nature of metallurgical test results, delays in obtaining or failures to obtain required governmental, environmental or other project approvals, political risks, uncertainties relating to the availability and costs of financing needed in the future, changes in equity markets, inflation, changes in exchange rates, fluctuations in commodity prices, delays in the development of projects, other prudent business reasons and the other risks involved in the mineral exploration and development industry forward-looking statements are subject to significant risks and uncertainties, and other factors that could cause actual results to differ materially from expected results. Readers should not place undue reliance on forward-looking statements. These forward-looking statements are made as of the date hereof and the Company assumes no responsibility to update them or revise them to reflect new events or circumstances other than as required by law.
Continental Gold Limited
Director, Investor Relations