TORONTO, March 27 /CNW/ - Carpathian Gold Inc (CPN - TSX) (the
"Corporation") wishes to advise that today it has closed its previously
announced private placement by way of a "bought deal", comprised of an
offering (the "Offering") of 12,000,000 Units of the Corporation at a price of
$1.00 per unit for gross proceeds of $12,000,000. Each Unit comprises one (1)
common share in the capital of the Corporation (a "Common Share") and one half
(1/2) of one Common Share purchase warrant. Each full Common Share purchase
warrant (a "Warrant") entitles the holder thereof to acquire one Common Share
at a price of $1.30 until July 27, 2008. Jennings Capital Inc. acted as lead
underwriter of the Offering and Clarus Securities Inc., as underwriter
(collectively the "Underwriters").
An aggregate of 780,000 broker warrants were issued to the Underwriters.
The Corporation also paid aggregate cash commissions to the Underwriters
representing 6.5% of the total gross proceeds of the Offering. Each broker
warrant entitles the holder thereof to purchase one Common Share at a price of
$1.06 per Common Share until July 27, 2008.
All securities issued in connection with the Offering are subject to a
four (4) month hold period, which expires on July 28, 2007. After giving
effect to the Offering, and assuming no exercise of the Warrants, the
Corporation will have 121,987,982 Common Shares issued and outstanding.
The net proceeds of the Offering will be used primarily for exploration
work on the Corporation's Romanian properties and for working capital
purposes. The principal focus of the exploration work will be on the Rovina
License located in central Romania, where the Corporation has defined two
large Cu + Au porphyry systems within 3 km of one another.
Carpathian Gold Inc. is a Canadian mineral exploration company focused on
gold exploration on its properties in Romania.
The TSX Exchange does not accept responsibility for the adequacy or
accuracy of this news release.
For further information:
For further information: Dino Titaro, President & CEO, or Mike O'Brien,
Manager, Investor Relations, Tel. (416) 368-7744 (CAN), Fax. (416) 260-2243
(CAN), e-mail: email@example.com, Website: www.carpathiangold.com; Eric
Leboeuf, Investor Relations, Montreal, Tel. (514) 341-0408 or 1-866-460-0408,
Fax. (514) 341-1527, e-mail: firstname.lastname@example.org; Paul Hilton, Investor
Relations, U.K., Tel. +44-207-881-0180, Fax. +44-0207-881-0181, e-mail: