Business
Desert Gold Provides Update re: Proposed Acquisition of TransAfrika Belgique S.A.
/N OT FOR DISSEMINATION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE U...
About this update from Desert Gold Ventures Inc.
[{"type":"text","content":"\n\n\n\n\n\n/NOT FOR DISSEMINATION TO UNITED STATES NEWSWIRE SERVICES OR FOR\n DISSEMINATION IN THE UNITED STATES/\n\n\nTSX Venture Symbol: DAU \n\n\nTORONTO, Oct. 5, 2011 /CNW/ - Further to its press release of June 21,\n 2011, Desert Gold Ventures Inc. (TSXV: DAU) (the \"Company\" or \"Desert Gold\") is pleased to provide the following\n update with respect to its proposed acquisition (the \"Acquisition\")\n from TransAfrika Resources Cyprus Limited (the \"Vendor\") of all of the\n outstanding shares of TransAfrika Belgique S.A. (\"TransAfrika\"), a\n private Belgian company which owns interests in three advanced\n exploration-stage gold deposits in central and western Africa through\n subsidiaries in Rwanda, Mali and Senegal.\n\n\nClosing of Subscription Receipt Financing\n\n\nEffective October 4, 2011, the Company successfully closed a private\n placement (the \"Financing\") of 4,949,665 subscription receipts at a\n price of $0.75 per subscription receipt for aggregate gross proceeds of\n $3,712,250. The Company engaged MGI Securities Inc. (\"MGI\") as agent in\n connection with the Financing.\n\n\nThe gross proceeds of the Financing, less certain costs and expenses of\n MGI, will be held in trust by Computershare Trust Company of Canada\n (\"Computershare\"), as subscription receipt agent, and released to the\n Company upon completion of the Acquisition (the \"Effective Date\")\n pursuant to the terms of a subscription receipt indenture entered into\n between the Corporation, MGI and Computershare.\n\n\nThese funds, combined with existing cash on hand, will enable the\n Company to satisfy the first phase of TransAfrika's work program and\n fulfill its working capital obligations under the terms of the\n definitive sale of shares agreement entered into with the Vendor and\n TransAfrika in respect of the Acquisition (the \"Share Exchange\n Agreement\").\n\n\nOn the Effective Date, each subscription receipt will automatically\n convert into one unit (a \"Unit\") of the Company, with each such Unit\n consisting of one common share and half of one common share purchase\n warrant.  Each whole warrant will entitle the holder to acquire one\n additional common share of the Company at an exercise price of $1.00\n for a period of 24 months following the Effective Date, provided that,\n in the event that the closing price of...