EnGold Closes $400,000 Final Tranche of $690,000 Private Placement
Vancouver, British Columbia--(Newsfile Corp. - October 13, 2016) - David H. Brett, President & CEO, Engold Mines Ltd., (TSXV: EGM) (the "Company," www.engold.ca) reports that EnGold has closed a second and final tranche of a non-brokered private placement previously announced on July 29, 2016, originally for $640,000 but subsequently increased to $690,000 (the "Offering"). The 2nd tranche closing consisted of the issuance of a total of 4,140,000 Flow Through units (the "FT Units") at a price of $0.07 per FT Unit for gross proceeds of $289,800 and 2,204,000 non Flow Through units (the "NFT Units") at a price of $0.05 per NFT Unit for gross proceeds of $110,200. Each FT Unit consists of one flow-through common share and one warrant ("Warrant") with each Warrant entitling the holder to acquire one non-flow through common share at a price of $0.10 per share until October 12, 2018. Each NFT Unit consists of one common share and one warrant ("Unit Warrant") with each Unit Warrant entitling the holder to acquire one non-flow through common share at a price of $0.08 per share until October 12, 2018. The first tranche closing of $290,000 ($200,200 FT & $80,800 NFT) was announced September 1, 2016, consisting of 2,860,000 FT Units and 1,796,000 NFT units, for a total of 7,000,000 FT units and 2,000,000 NFT units issued in both tranches of the Offering.
Proceeds of the $490,000 FT units are being used for exploration of the Company's 100% owned Lac La Hache Property in central British Columbia and the $200,000 proceeds of the NFT units are being used for general working capital purposes.
In connection with the final tranche of the Offering, the Company paid cash finder's fees of $27,510 and issued 437,080 finder's warrants entitling the holder to purchase one common share at $0.08 per share for two years ending October 12, 2018.
All shares and warrants issued in connection with the final tranche of the Offering are subject to a 4-month hold period ending February 12, 2017.
Engold Mines Ltd.,
Per/
David Brett, MBA
President & CEO
For further info contact David Brett, 604-682-2421 or david@engold.ca
This news release may contain "forward-looking statements". Readers are cautioned that any such statements are not guarantees of future performance and that actual development or results may vary materially from those in these "forward looking statements."
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
