Citadel Gold Mines Inc. announces completion of private placement

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[{"type":"text","content":"\n\n\n\nTORONTO, Nov. 6 /CNW/ - CITADEL GOLD MINES INC. (CGM.H: NEX Exchange).\n\n\nCitadel Gold Mines Inc. announces that today it closed its\npreviously-announced non-brokered private placement (the "Private Placement")\nof a combination of common shares and flow-through common shares to Dr.\nBernard Sherman, a principal shareholder and related party to the Company. NEX\nExchange approval of the Private Placement was received on November 1, 2007.\n\n\nThe Private Placement was for 4,250,000 common shares at a price of $0.08\nand for 1,454,545 flow-through common shares at a price of $0.11, for\naggregate proceeds to Citadel of approximately $500,000. Upon completion of\nthe Private Placement, Dr. Sherman controls, directly and indirectly,\napproximately 55% of the Company.\n\n\nThe common shares issued in connection with the Private Placement are\nsubject to a hold period expiring March 7, 2008.\n\n\nThe terms of the Private Placement were negotiated between Dr. Sherman\nand a special committee of Citadel's board of directors (the "Special\nCommittee"), consisting solely of independent directors and formed for the\npurpose of considering the Private Placement. In determining the terms of the\nPrivate Placement, the Special Committee received independent advice and a\nfairness opinion from Research Capital Corporation in respect of the\ntransaction.\n\n\n"We are pleased by Dr. Sherman's vote of confidence in the Company and\nits future prospects," said John Sadowski, President, Secretary and Treasurer\nof Citadel. "The completion of this financing enhances our balance sheet and\nallows us to move forward with our exploration and development work on our\njoint venture property near Sudbury, Ontario and on other properties of merit\npresently being considered. We are very excited about Citadel's prospects and\nappreciate our shareholders' ongoing support."\n\n\nThe NEX Exchange has neither approved nor disapproved of the information\n\n\ncontained herein. The statements used in this press release may contain\n\n\nforward-looking statements that may involve a number of risks and\n\n\nuncertainties. Actual events or results could differ materially from the\n\n\nCompany's forward-looking statements and expectations.\n\n\n","length":2359,"tagName":"div"}]

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