TORONTO, Nov. 6 /CNW/ - CITADEL GOLD MINES INC. (CGM.H: NEX Exchange).
Citadel Gold Mines Inc. announces that today it closed its previously-announced non-brokered private placement (the "Private Placement") of a combination of common shares and flow-through common shares to Dr. Bernard Sherman, a principal shareholder and related party to the Company. NEX Exchange approval of the Private Placement was received on November 1, 2007.
The Private Placement was for 4,250,000 common shares at a price of $0.08 and for 1,454,545 flow-through common shares at a price of $0.11, for aggregate proceeds to Citadel of approximately $500,000. Upon completion of the Private Placement, Dr. Sherman controls, directly and indirectly, approximately 55% of the Company.
The common shares issued in connection with the Private Placement are subject to a hold period expiring March 7, 2008.
The terms of the Private Placement were negotiated between Dr. Sherman and a special committee of Citadel's board of directors (the "Special Committee"), consisting solely of independent directors and formed for the purpose of considering the Private Placement. In determining the terms of the Private Placement, the Special Committee received independent advice and a fairness opinion from Research Capital Corporation in respect of the transaction.
"We are pleased by Dr. Sherman's vote of confidence in the Company and its future prospects," said John Sadowski, President, Secretary and Treasurer of Citadel. "The completion of this financing enhances our balance sheet and allows us to move forward with our exploration and development work on our joint venture property near Sudbury, Ontario and on other properties of merit presently being considered. We are very excited about Citadel's prospects and appreciate our shareholders' ongoing support."
The NEX Exchange has neither approved nor disapproved of the information
contained herein. The statements used in this press release may contain
forward-looking statements that may involve a number of risks and
uncertainties. Actual events or results could differ materially from the
Company's forward-looking statements and expectations.