Amarillo announces non-brokered private placement for up to $6 million in proceeds
Amarillo Gold Corp. (“Amarillo” or the “Company”) (TSX-V AGC) is pleased to announce that, subject to regulatory approval, it will arrange a non-brokered private placement financing (the "Private Placement") of up to 8,000,000 shares of the Company at a price of $0.75 (seventy five cents) per each common share issued in the capital of the Company, for aggregate proceeds of up to $6.0 million. Subject to certain conditions including, but not limited to, the receipt of the approval of the TSX Venture Exchange.
All currency references are in Canadian dollars. The proceeds of this offering will give working capital and allow the Company to accelerate the work program on its gold projects in Brazil.
This news release is not for distribution to the United States newswire services for dissemination in the United States. The securities offered have not been registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.
Amarillo Gold Corp. is a company focused on the discovery, acquisition, definition and development of gold resources in Brazil. Its principal projects are the Mara Rosa project in the state of Goiás and the Lavras do Sul project in the state of Rio Grande do Sul. The Posse Deposit at Mara Rosa contains 623,000 ounces indicated from 11.9M Tonnes @ 1.62 g/t Au and 451,000 ounces inferred from 10.1M Tonnes @ 1.38 g/t Au at a 0.5 g/t Au cut-off grade, as defined in a 43-101 compliant resource independently prepared by Australian Exploration Field Services. The project is in the economic evaluation stage. The Posse deposit was mined by WMC during the 1990’s (mined areas are excluded from the above resource figures) and is located in an area of excellent infrastructure. It is located some 35 km NE of Yamana’s Chapada open pit Cu-Au operation, 105 km NE of Serra Grande’s underground Au mine, 105 km NNW of Anglo American’s nickel laterite project (in construction), 95 km NW of Votarintim’s Niquelandia nickel laterite mine and approximately 60 kms NE of Yamana’s Pilar Au project (in feasibility). Grid power to the site was established during the previous open pit mining operation and the Serra da Mesa hydro-electric dam lies 35 km to the east.
The Lavras do Sul project is in the advanced exploration stage with over 16,000m of drilling with encouraging gold mineralization being discovered and defined, also in an area of excellent infrastructure. The Company also has a portfolio of earlier stage projects. All properties under Amarillo’s management are located in areas of good infrastructure and robust community support.
ON BEHALF OF THE BOARD OF DIRECTORS
AMARILLO GOLD CORP.
Per: “Buddy Doyle”
Buddy Doyle, President
Amarillo Gold Corp.
+ 1-604-689 1799 (Canada)
+55-31-3261 5974 (Brazil)
Neither 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:-
Statements in this news release that are not historical are forward looking statements. Forward looking statements in this news release include that private placement proceeds will be directed towards further exploration and definition of our Brazilian gold projects and for working capital; that successful closure of this offering will allow the Company to proceed with a work program on its gold projects in Brazil over the next 12 months, progressing our Mara Rosa gold project to production decision and defining gold reserves at our Lavras do Sul project.
It is important to note that the Company’s actual outcomes may differ materially from those statements. Factors which may delay or prevent these forward looking statements from being realized include misinterpretation of data; that we may not be able to get equipment or labour as we need it; that we may not be able to raise sufficient funds to complete our intended exploration; that our application to drilling applications may be denied; that weather, logistical problems or hazards may prevent us from exploration; that equipment may not work as well as expected; that analysis of data may not be possible accurately and at depth; that results which we or others have found in any particular location are not necessarily indicative of larger areas of our property; and that despite encouraging data there may be no commercially exploitable mineralization on our properties. It is our policy not to update forward looking statements.