Roxgold Inc. (TSX-V:ROG) is pleased to announce that it has closed its previously announced bought deal financing of 25 million common shares of Roxgold and the related over-allotment option of 3.75 million Shares at a purchase price of $0.80 per Share for aggregate gross proceeds in the amount of C$23 million. The Financing was co-led by Cormark Securities Inc. and Macquarie Capital Markets Canada Ltd. on behalf of a syndicate of underwriters including Raymond James Ltd., RBC Capital Markets, Canaccord Genuity Corp. and Haywood Securities Inc.
The net proceeds from the Offering will be used (i) to replace the US$10 million equity financing facility (the “Equity Financing Facility”) provided by Roxgold’s underground mining contractor, African Underground Mining Services (“AUMS”), (ii) for regional exploration, and (iii) for general corporate purposes.
The Company also announced that AUMS has entered into an escrow agreement with Roxgold for an eight month period for the 8,979,286 Shares which it previously acquired pursuant to its US$5 million investment made in July 2015 on the basis that Roxgold does not utilize the Equity Financing Facility during the escrow period.
The securities offered in the Financing have not been, and will not be, registered under the U.S. Securities Act of 1933, as amended (the “U.S. Securities Act”) or any U.S. state securities laws, and may not be offered or sold in the United States or to, or for the account or benefit of, United States persons absent registration or any applicable exemption from the registration requirements of the U.S. Securities Act and applicable U.S. state securities laws.
This press release shall not constitute an offer to sell or solicitation of an offer to buy the securities in any jurisdiction. The Shares will not be and have not been registered under the United States Securities Act of 1933 and may not be offered or sold in the United States absent registration or applicable exemption from the registration requirements.
Roxgold is a gold exploration and development company with its key asset, the high grade Yaramoko Gold Project, located in the Houndé greenstone region of Burkina Faso, West Africa. The Company is currently in construction and expects to be producing gold by the second quarter of 2016. Roxgold trades on the TSX Venture Exchange under the symbol ROG and as part of the Nasdaq International Designation program with the symbol OTC: ROGFF.
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