VANCOUVER, BRITISH COLUMBIA--(Marketwired - July 31, 2015) -
THIS NEWS RELEASE IS NOT FOR DISTRIBUTION TO THE UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
Terraco Gold Corp. (TSX VENTURE:TEN) ("Terraco" or the "Company") is pleased to announce, that further to its news release of July 17, 2015, the Company has closed its non-brokered private placement (the "Private Placement") by issuing 8,841,397 units (the "Units) at a price of CAN$0.075 per Unit for gross proceeds of approximately CAN$663,105. The proceeds are an oversubscription of $63,105 or 10.52% from the July 17, 2015 announcement.
"Terraco is pleased to close this financing with the support of long term shareholders including directors and management. We recognize that the public mining sector is currently going through difficult times and appreciate the confidence investors and shareholders have placed in Terraco. We believe that the assets of the Company give strong credence to long term value, in particular the gold royalty division. Our current NSR royalty assets apply distinctively to the federal and private lands that make up the majority of the currently outlined gold resource at the Spring Valley, Nevada project, which is 75% owned and operated by Barrick Gold Corporation in a joint venture. Terraco has a Nevada cornerstone royalty asset by controlling up to a 3% NSR from the potential life of mine cash flow on the Spring Valley mining claims," stated Todd Hilditch, CEO of Terraco.
Each Unit is comprised of one common share of the Company (a "Share") and one-half of one share purchase warrant (a "Warrant"). Each whole Warrant will entitle the holder thereto to purchase, for a period of twenty four (24) months expiring July 31, 2017, one additional Share (a "Warrant Share") at an exercise price of CAN$0.10 per Warrant Share. The securities issued under the Private Placement will be subject to a hold period until December 1, 2015. No finders' fees were paid in connection with this private placement. Directors and management subscribed for $157, 570 or 23.8%, of the private placement.
The closing of this private placement is subject to TSXV final approval.
About Terraco Gold
Terraco is a junior mining company with a gold asset portfolio that includes a gold royalty and royalty options on Spring Valley (Nevada), which is a joint venture operated by Barrick Gold Corporation with over USD$70 million spent at the project to date. Terraco also controls over 35 sq kms of early-stage exploration potential (the Moonlight Project) adjoining the Spring Valley joint venture to the north. In addition, Terraco has an advanced-stage gold project in Idaho which has disclosed a mineral resource estimate in compliance with National Instrument 43-101.
Terraco is listed on the TSX Venture Exchange under the symbol "TEN". Please visit Terraco's website at 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.
Forward Looking Statements
This release contains forward looking statements. More particularly, this release contains statements concerning the anticipated Private Placement. Although Terraco believes that the expectations reflected in these forward looking statements are reasonable, undue reliance should not be placed on them because Terraco can give no assurance that they will prove to be correct. Since forward looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. The closing of the Private Placement could be delayed if Terraco is not able to obtain the necessary regulatory and stock exchange approvals on the timelines it has planned. The Private Placement will not be completed at all if these approvals are not obtained or some other condition to the closing is not satisfied. Accordingly, there is a risk that the Private Placement will not be completely sold, completed within the anticipated time or at all. Additional information on these and other factors that could affect Terraco's operations and financial results are included in reports on file with Canadian securities regulatory authorities and may be accessed through the SEDAR website (
www.sedar.com).