Amarillo Closes $6 million Non-Brokered Private Placement
Vancouver, B.C. - Amarillo Gold Corp. (TSX-V AGC) (“Amarillo” or the “Company”) is pleased to announce that it has completed its non-brokered private placement financing (the "Private Placement") of 8,000,999 shares of the Company at a price of $0.75 (seventy-five cents) per share for aggregate proceeds of $6.0 million (all currency references are in Canadian dollars).
The proceeds will be directed towards further exploration and definition of our Brazilian gold projects.
The Company thanks those that participated in the Private Placement.
A finder's fee will be paid regarding a portion of this transaction.
This news release is not for distribution to United States news wire services or 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.
Buddy Doyle, President
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