Algold Resources Announces Overnight Marketed Price Placement Financing for up to $3 Million

Algold Resources Limited (TSXV:ALG) announced that it has appointed a group of agents led by Beacon Securities Limited to sell units of the company by private placement, on an overnight marketed basis, for gross proceeds of up to approximately C$3 million. The price of the units is to be determined in the context of the market and will consist of one common share and one common share purchase warrant.

As quoted in the press release:

The net proceeds from the Offering are intended to be used to advance the Kneivissat and Legouessi properties for working capital and general corporate purposes.

The Company has agreed to pay the Agents a cash fee equal to 7.0 percent of the gross proceeds from the Offering. As additional compensation, the Agents will be issued compensation options entitling the Agents to purchase that number of Common Shares equal to 7.0 percent of the number of Units sold under the Offering exercisable at Issue Price for a period of 12 months from the closing date of the offering.

The closing of this equity offering is expected to occur on or the week of May 25, 2015 and is subject to receipt of all necessary regulatory approvals. The Units, including all underlying securities thereof, and the compensation options issued with respect to the Offering will be subject to a four month hold period in accordance with applicable Canadian securities laws.

Click here to read the full Algold Resources Limited (TSXV:ALG) press release.