RICHMOND, BC, Jan. 10 /CNW Telbec/ - Tagish Lake Gold Corp., (TSX-V: TLG) Further to the news releases of September 13, 2006 and November 20, 2006, Tagish and Macquarie Bank Ltd ("Macquarie") have amended the terms of the previously announced equity private placement and secured debt feasibility finance facility in response to comments received from the TSX Venture Exchange.
The equity private placement will consist of 2,777,777 units (the "Units") at a subscription price of C$0.18 per Unit for gross proceeds of C$500,000. Each Unit consists of one common share in the capital of the Company and one non-transferable common share purchase warrant, each warrant entitling the holder to acquire one additional common share at a price of C$0.25 per share for twenty-four (24) months from the date of issuance.
The secured debt feasibility finance facility will consist of an interest-bearing C$1,500,000 secured debt feasibility finance facility for the completion of the bankable feasibility study for the Company's Skukum Creek gold-silver project. The draw downs for these funds will be in two tranches of C$750,000 each, the first being conditional on, among other things, the completion of an updated resource model incorporating the latest exploration drilling program at Skukum Creek. The second tranche will be made available conditional on, among other things, successful review of the feasibility study's progress. All funds advanced to the Company will be due and repayable on January 2, 2009. In connection with the debt facility, Tagish will grant Macquarie 3,200,000 non-transferable common share purchase warrants, each warrant entitling the holder to acquire one common share at a price of C$0.25 per share until January 2, 2009. The warrants will vest and thereafter be exercisable proportionately with the draw downs of the finance facility.
Completion of the proposed private placement will be subject to the negotiation, execution and delivery of a definitive subscription agreement and subscription funds together with the TSX Venture Exchange acceptance of the proposed subscriber and documentation related to the offering. The secured debt feasibility finance facility and related share purchase warrants remain subject to the negotiation and execution of definitive agreements between the Company and Macquarie, acceptance of the documentation related to the financing and the common share purchase warrants by the TSX Venture Exchange, standard commercial conditions of lending and other technical and due diligence matters related to the Company and the Skukum Creek gold-silver project.
Any securities issued with respect to the either private placement or secured debt feasibility finance facility will be subject to a hold period of four months and one day from the closing date in accordance with the rules and policies of the TSX Venture Exchange and applicable Canadian securities laws and such other further restrictions as may apply under foreign 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, with a currently defined measured plus indicated resource of 1,120,000 tonnes grading 8.0 g/t Au and 153.1 g/t Ag (MineTech International Ltd., 2003), and the Mt. Skukum gold deposit.
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.