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(TSX.V:TLG)
RICHMOND, BC, May 25 /CNW Telbec/ - Tagish Lake Gold Corp. (TSX-V: TLG) ("Tagish" or "the Company") announces that it is undertaking a non-brokered private placement offering of flow-through share units (the "Units") at a subscription price of C$0.23 per Unit for gross proceeds of up to C$4,000,000. Each Unit consists of one "flow-through" common share in the capital of the Company and one-half of one non-transferable common share purchase warrant, each whole warrant entitling the holder to acquire one additional non-"flow-through" common share at a price of C$0.30 per share for eighteen (18) months from the date of issuance. In connection with the flow-through offering, the Company has agreed with certain eligible registrants to pay a finders' fee in cash of 8% of the proceeds raised from participating subscribers introduced to the Company by such registrants and grant finders' warrants on terms similar to those included in the flow-through share units equal to 8% of the Units subscribed by such subscribers.
The anticipated proceeds of the flow-through offering will be used for eligible Canadian Exploration Expenses ("CEE") as defined in subsection 66.1(6) of the Income Tax Act (Canada) on the Company's Skukum Creek gold-silver deposit. The next phase of work will, among other things, include driving the 1100m adit, 200 metres below the existing 1300m adit, to explore the downward extension of the Rainbow, Kuhn, Rainbow Two and Berg zones at Skukum Creek.
Completion of this proposed private placement will be subject to the negotiation, execution and delivery of definitive subscription agreements, TSX Venture Exchange acceptance of the proposed subscribers and documentation related to the offering. Any securities to be issued with will be subject to a hold period of four months from the closing date in accordance with the rules and policies of the TSX Venture Exchange and applicable Canadian securities laws.
About Tagish Lake Gold Corp.
Tagish Lake Gold Corp. explores for and develops high grade gold-silver mineral deposits in the Yukon Territory of Canada. The Company is currently focused on its wholly owned, 178 km(2) Skukum Mineral District located 80 km by road south of Whitehorse. The Skukum Mineral District hosts the Skukum Creek gold-silver deposit and the Goddell Gully gold deposit and the Mt. Skukum gold deposit, which was in production during the mid eighties.
THE TSX VENTURE EXCHANGE DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY
OR ACCURACY OF THIS NEWS RELEASE.
This news release includes certain forward looking statements in respect to various issues including upcoming events. These forward looking statements are based upon current expectations which involve risks and uncertainties that could cause actual outcomes and results to differ materially. Mineral exploration is subject to a high degree of risk, which even a combination of experience, knowledge, and careful evaluation may fail to overcome. Exploration activities are also expensive. The Company will therefore require additional financing to carry on its business, and such financing may not be available when it is needed. The Company disclaims any obligation to revise any forward looking statements as a result of information received after the fact or regarding future events.