| | May 30, 2007
YGC RESOURCES LTD. CLOSES FIRST TRANCHE OF PRIVATE PLACEMENT
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| | NOT FOR DISSEMINATION OR DISTRIBUTED IN THE UNITED STATES OR THROUGH UNITED STATES WIRE SERVICES
Vancouver, British Columbia, May 30, 2007 -- YGC Resources Ltd. (Toronto Stock Exchange: YGC; Frankfurt Xetra Exchange: ZH6) Further to its news release of April 22, 2007, YGC Resources Ltd. (the "Company") is pleased to announce that it has closed the first tranche of a brokered private placement for gross proceeds of $60,434,100, from the issuance of 33,574,500 subscription receipts of the Company ("Subscription Receipts") at Cdn $1.80 per Subscription Receipt. Each Subscription Receipt will entitle the holder to acquire, at no additional cost and upon certain conditions being met, one common share and one half of one transferable share purchase warrant. Each whole warrant will entitle the holder to purchase one additional Common Share at a price of Cdn$3.00 for a period of five years.
In connection with this first tranche, the Company will pay to the Agents a cash commission of $3,021,705. The Agents will also be issued 1,678,725 Compensation Options (the "Agents' Options"). Each Agent's Option will entitle the holder to purchase one Common Share for a period of two years at an exercise price of $2.10 Cdn per Common Share.
All securities issued pursuant to this private placement are subject to a four month hold period, commencing on the closing date.
The gross proceeds from this tranche will be held in escrow and will be released to the Company on the closing of the transaction with Queenstake Resources Ltd. announced on February 5, 2007, pursuant to which the Company will combine with Queenstake.
The proceeds of the private placement will be expended on mine development, mining equipment, process plant upgrades and equipment, exploration drilling and other expenditures at the Jerritt Canyon mine; feasibility studies and permitting, exploration work, including drilling, on the Ketza River Project; and general working capital.
FOR FURTHER INFORMATION PLEASE CONTACT:
Graham Dickson, CEO/President (604) 688-9427
Email: graham@ygcr.ca
YGC RESOURCES LTD.
Graham Dickson, President
Visit our website at www.ygcr.ca
WARNING: The Company relies upon litigation protection for "forward-looking" statements.
This news release does not constitute an offer to sell or a solicitation of an offer to sell any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available. |
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| | You can view the Next YGC Resources News item: Tue Jun 12, 2007, YGC RESOURCES LTD. CLOSES FINAL TRANCHES OF PRIVATE PLACEMENTS
You can view the Previous YGC Resources News item: Fri May 18, 2007, YGC RESOURCES LTD. ANNOUNCES APPROVAL OF PLAN OF ARRANGEMENT WITH QUEENSTAKE RESOURCES LTD.
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