/THIS NEWS RELEASE IS NOT FOR DISSEMINATION IN THE UNITED STATES OR TO
ANY UNITED STATES NEWS SERVICES/
TORONTO, March 2 /CNW/ - Carpathian Gold Inc (TSX:CPN) (the
"Corporation") announces that it has entered into an agreement to issue on a
"bought deal", basis with Jennings Capital Inc., as lead underwriter and
Clarus Securities Inc. as underwriter (collectively the "Underwriters"), a
private placement offering (the "Offering") of 11,000,000 Units of the
Corporation at a price of $1.00 per unit for gross proceeds of $11,000,000.
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 warrant entitles the holder thereof to acquire one Common Share at a
price of Cdn $1.30 for 16 months after closing.
Under the terms of the agreement, an aggregate of 715,000 compensation
options are payable to the underwriters. Each compensation option entitles the
holder thereof to purchase one Common Share at a price of $1.00 per share for
16 months after closing. The Corporation will also pay cash commissions to the
Underwriters representing 6.5% of the total gross proceeds of the Offering.
All securities issued in connection with the Offering are subject to a
four (4) month plus one day hold period from the date of issuance. After
giving effect to the Offering, and assuming no exercise of the Warrants, the
Corporation will have 120,862,981 Common Shares issued and outstanding.
The net proceeds of the Offering will be used primarily for exploration
work on the Corporation's Romanian License and for working capital purposes.
Principally the exploration work will be on the Rovina License, located in
central Romania, where the Corporation has defined two large gold + copper
porphyry systems within 2.5 km of one another.
This Offering is subject to regulatory approval and completion of
This News Release is not for dissemination in the United States or to any
United States News Services. The common shares of Carpathian Gold Inc. have
not and will not be registered under the United States Securities Act of 1933,
as amended, (the "US Securities Act") or any state's securities laws and may
not be offered or sold in the United States or to any US person except in
certain transactions exempt from the registration requirements of the US
Securities Act and applicable state securities laws.
The Corporation is a Canadian mineral exploration company focused on gold
exploration on its properties in Romania and Hungary.
The TSX 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: