VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 28, 2012) -
THIS PRESS RELEASE IS NOT FOR DISTRIBUTION IN THE UNITED STATES OR TO U.S. NEWS WIRE SERVICES
High Desert Gold Corporation ("HDG" or the "Company") (TSX VENTURE:HDG)(HDGCF) is pleased to report that today it closed two non-brokered private placements for gross proceeds of Cdn$3,628,400.
South American Silver Corp. ("SASC") (SAC.TO), a Canadian public company, purchased 15,580,000 common shares of the Company at a price of Cdn$0.18 per share for aggregate proceeds of Cdn$2,804,400.
The Company also issued 4,120,000 units at a price of Cdn$0.20 per unit for aggregate proceeds of Cdn$824,000, with each unit comprised of one common share and one common share purchase warrant. Each warrant entitles the holder to purchase one common share of the Company at a price of Cdn$0.23 per share until December 28, 2015.
Following completion of the SASC subscription and the concurrent private placement of units by the Company, SASC owns approximately 19.9% of the issued and outstanding common shares of the Company, based on there being 78,285,233 common shares of the Company issued and outstanding following the private placements. The Company also granted SASC a pre-emptive right enabling it to maintain its percentage equity interest in the Company until December 28, 2015.
The Company plans to use the net proceeds from the two private placements to fund exploration of the Company's properties and for administrative expenses and unallocated working capital.
Ralph Fitch, President and CEO of HDG, stated "We are very pleased to have completed these transactions going into 2013 as these proceeds, along with our current treasury balance, place us in a very strong financial position to continue with an aggressive exploration program at our flagship property, Gold Springs along the Nevada/Utah border. We are also pleased that being non-brokered, there were no fees associated with the two private placements."
All securities issued pursuant to the private placements are subject to a four-month regulatory hold period, which expires on April 29, 2013.
ABOUT HIGH DESERT GOLD CORPORATION
The Company is a mineral exploration company that acquires and explores mineral properties, primarily gold, copper and silver, in North America. The principal property held by HDG is a 70% interest in the Gold Springs gold project situated along the border between Utah and Nevada. The Company also holds direct interests in a number of other properties including the San Antonio project in Sonora, Mexico, the Gold Lake property in New Mexico, and the Kinkaid and Pinyon properties in Nevada. The Company also has a 34.2% interest in the Canasta Dorada property in Sonora, Mexico, through its equity interest in Highvista Gold Inc.
Certain statements in this press release constitute "forward-looking statements". These forward-looking statements include, but are not limited to, statements regarding the use of proceeds from the private placement. Forward-looking statements express, as at the date of this press release, the Company's plans, estimates, forecasts, projections, expectations, or beliefs as to future events or results. Forward-looking statements are based on certain assumptions, including the key assumptions and parameters on which such estimates are based, involve risks and uncertainties and there can be no assurance that such statements will prove to be accurate. Therefore, actual results and future events could differ materially from those anticipated in such statements. Factors that could cause results or events to differ materially from current expectations expressed or implied by the forward-looking statements, include, but are not limited to, changes in project parameters as plans continue to be refined and other risks more fully described in the Company's Management Discussion & Analysis of Financial Position and Results of Operations, which is available on SEDAR at www.sedar.com. The material assumptions that were applied in developing the forward-looking statements include: the availability of equipment and qualified personnel and the timely receipt of permits to advance the Gold Springs project; and the execution of the Company's existing plans and further exploration and development programs for Gold Springs, which may change due to changes in the views of the Company or if new information arises which makes it prudent to change such plans or programs. Readers are cautioned not to place undue reliance on the forward-looking statements contained in this press release. Except as required by law, HDG assumes no obligation to update or revise any forward-looking statement, whether as a result of new information, future events or any other reason.
- Investment & Company Information
Executive Vice President