TORONTO, Oct. 11 /CNW/ - CITADEL GOLD MINES INC. (CGM.H: NEX Exchange).
Citadel Gold Mines Inc. announces that it plans to complete a
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.
The Private Placement will be 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 will control, directly and indirectly,
approximately 55% of the Corporation.
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
"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. "This financing will add to our working capital and allow us to
continue 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' faith in the Company."
Subject to receipt of NEX Exchange approval, it is expected that the
Private Placement will be completed on or before November 6, 2007.
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.
For further information:
For further information: John Sadowski, President, Citadel Gold Mines
Inc., Telephone: (416) 675-8379