FDG Closes Private Placement
VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 31, 2012) -
THIS NEWS RELEASE IS NOT FOR DISTRIBUTION IN THE UNITED STATES OR TO U.S. NEWS AGENCIES
F.D.G. Mining Inc. (TSX VENTURE:FDG) (the "Company") announces that further to its news releases of August 27, 2012 and September 27, 2012, the Company has completed its non-brokered private placement of 531 units ("Units") at a price of $1,000 per Unit for gross proceeds of $531,000.
Promissory notes in the aggregate principal amount of $531,000 (the "Notes") and a total of 890,060 "bonus" common shares of the Company at a deemed price of $0.105 per share have been issued in connection with the private placement, all subject to a four month and one day hold period expiring March 1, 2013. The Notes are for a term of one year maturing October 31, 2013 and bear interest at the rate of 12% per annum, with the first year's full interest of $120 per Note payable up front upon closing. The Notes are also secured, on a pro rata basis, by a general security agreement over all present and after-acquired personal property of the Company.
The proceeds from the private placement will be used to maintain the Company's interest in and carry out pre-production engineering studies on the Topacio gold concession in eastern Nicaragua, for property tax payments and for general corporate and working capital purposes.
A cash finder's fee of $6,000 (10%) was paid on a portion of the gross proceeds raised under the private placement.
About F.D.G. Mining Inc. (www.fdgmining.com)
F.D.G. Mining Inc. is a Canadian junior mining company engaged in acquisition, exploration and development of precious metal properties in Nicaragua. The Company is currently focused on advancing its core property, the past-producing 9300 hectare Topacio gold concession to near term production. Topacio has an NI 43-101 compliant inferred resource of 680,000 tonnes grading 5.2 g/t gold and 34 g/t silver, and a similar geological setting to B2Gold's La Libertad and El Limon mines to the northwest. FDG trades on the TSX Venture Exchange under the symbol FDG.
On Behalf of the Board of Directors
David St. Clair Dunn, P. Geo., President and CEO
This news release contains forward-looking statements which relate to future events or future performance and reflect management's current expectations and assumptions regarding, among other things, the nature and timing of upcoming work programs, geological interpretations, and intended use of proceeds. Forward-looking statements address future events and conditions and therefore, involve inherent risks and uncertainties. Readers are cautioned that these forward looking statements are neither promises nor guarantees, and are subject to risks and uncertainties that may cause future results to differ materially from those expected. All of the forward-looking statements made in this news release are qualified by these cautionary statements and those in our continuous disclosure filings available on SEDAR at www.sedar.com. These forward-looking statements are made as of the date hereof and the Company does not assume any obligation to update or revise them to reflect new events or circumstances save as required under applicable securities legislation.
FOR FURTHER INFORMATION PLEASE CONTACT:
F.D.G. Mining Inc.
David St. Clair Dunn, P. Geo.
President and CEO