Trading Symbol: TSX-V: IG
CALGARY, April 22 /CNW/ - Infinito Gold Ltd. (the "Company") announces
that it has drawn down a further $3,500,000 under the Secured Convertible Note
held by Exploram Enterprises Ltd. ("Exploram") issued by the Company on
February 10, 2009. Under this drawdown the principal amount of the drawdown
may be converted into shares of the Company at a deemed price of $0.174 per
share, being the 20-day volume weighted average price of the shares of the
Company for the 20 trading days ending on the date of issue. In connection
with the drawdown Exploram was also issued 20,114,943 common share purchase
warrants (the "Warrants"). The $3.5 million will be used to continue payments
on capital items being delivered to the Crucitas mine project in Costa Rica,
working capital and corporate general and administrative expenses.
The terms of the Secured Convertible Notes are described in detail in the
Company's news release of February 10, 2009. Exploram waived certain
conditions precedent to the Company's right to drawdown these funds under the
Secured Convertible Notes, including the requirement for the issue of a
favourable decision in respect of the Costa Rican legal challenge to the grant
of a change of land use permit for the Crucitas mine announced by the Company
on October 21, 2008. The Company is still waiting a ruling on this issue from
the Constitutional Court, or Sala IV in Costa Rica. This waiver only applied
to this drawdown.
The Warrants issued at closing are exercisable until April 21, 2014 and
each Warrant entitles the holder to acquire one share of the Company at $0.174
The Company has paid a cash structuring fee of $105,000 to Exploram in
respect of the funds drawdown.
Before the drawdown Exploram held 61,154,490 shares of the Company and
common share purchase warrants and a Secured Convertible Note of the Company
entitling it to acquire a further 335,476,191 common shares of the Company. As
a result of this $3,500,000 drawdown, Exploram will be entitled to acquire a
further 40,229,886 common shares of the Company upon conversion in full of the
additional principal due under its Secured Convertible Note and exercise of
the Warrants. The Company presently has 122,184,289 shares outstanding.
The Warrants and any shares issuable under the Warrants and the Secured
Convertible Note in respect of the amount drawn down are subject to a hold
period expiring on August 22, 2009.
Caution Regarding Forward-Looking Information and Statements
Certain statements in this press release address future events and
conditions and, as such, involve known and unknown risks, uncertainties and
other factors which may cause the actual results, performance or achievements
to be materially different from any future results, performance or
achievements expressed or implied by the statements. These factors include,
among others, the inherent risks involved in the exploration and development
of mineral properties, the uncertainties involved in interpreting drilling
results and other geological data, fluctuating metal prices, the possibility
of project cost overruns or unanticipated costs and expenses, uncertainties
relating to the availability and costs of financing needed in the future, the
possibility that all necessary governmental and regulatory approvals will not
be received, and the availability of a qualified workforce and third party
contractors necessary for the development and operation of a mine. The Company
undertakes no obligation to update these forward-looking information or
statements if circumstances or management's estimates or opinions should
change. The reader is cautioned not to place undue reliance on forward-looking
information or statements.
INFINITO GOLD LTD.
"The TSX Venture Exchange does not accept responsibility for the adequacy
or accuracy of this release."
For further information:
For further information: INFINITO GOLD LTD., 216, 102 - 8th Avenue S.W.,
Calgary, Alberta, T2P 1B3, Telephone: (403) 444-5191