July 10, 2009 Antioquia Gold Announces Private Placement
July 10, 2009, Calgary, Alberta: Antioquia Gold Inc. (TSX-V: AGD) is pleased to announce it's intention to complete a private placement subject to the approval of the TSX Venture Exchange ("TSX-V") pursuant to TSX-V Policy 4.1 The intention is to issue up to 13,400,000 units at a price of $0.10 per unit, the price having been reserved with the TSX-V on June 10, 2009. Each unit is comprised of one AGD common share and a half warrant. Each full warrant will entitle the holder to purchase one AGD common share at a price of $0.30 per share exercisable for 24 months from the date of close. It is expected that $334,478 of convertible loans will be converted in the course of this private placement to purchase 3,344,780 units, and the balance will be taken up by subscriptions for cash of up to $1,005,522 for 10,055,220 units. Upon completion of this private placement AGD will have 39,551,210 common shares issued and outstanding. The cash proceeds will be added to working capital and thereby used to reduce accounts payable, continue exploration activities and initiate the drilling programs in Colombia.
AGD is a Calgary based mineral exploration company focused on searching out precious metals and other mineral opportunities in Colombia. AGD's principal asset is its Cisneros Project, located 70 kilometers northeast of Medellin in the Department of Antioquia, Colombia.
Over the past 6 months AGD has performed a great deal of work to secure and expand its presence in Colombia and in particular the Cisneros area of Antioquia where exploration has continued through the global market downturn. As reported in the press release of May 20, 2009 AGD has encountered a significant shear zone in a shallow historic artisanal mine known as Chapulin. The shear zone is believed to be the result of intersecting shear structures which has resulted in high grade gold mineralization over enhanced widths around the intersection (a total weighted average of 2.50 meters @ 32.31 grams of gold per tonne). The structure was systematically sampled by both channel samples (via rock saw) and grab samples, where accessible, within the artisanal workings. Dimensions of the structure are undefined due to the limited exposure in the artisanal workings and will require drilling. AGD has yet to receive the results of over 350 remaining samples. Currently only 13 of the more than 40 mineralized structures identified on the original concessions have been mapped and sampled. Field work has also commenced on the contiguous 5250 Ha concession acquired from Grupo de Bullet and there are strong indications of the mineralized structures continuing onto them.
The main focus of the funds raised will be to commence an initial 3,000 meter drill program on premier geology structures to definitively demonstrate the potential of the Cisneros project. It is anticipated that once environmental and drilling permits are in place drilling will have commenced by mid August.
The Cisneros Project consists of 6 contiguous mineral dispositions covering 279 Ha plus 5,243 Hectares controlled under an agreement with Grupo de Bullet. The properties are located geologically on a large granodiorite intrusive called the Antioquia Batholith, The geologic model has been defined as a structurally controlled mesothermal lode/vein type system. This system appears to be laterally continuous, and dominated by gold with various secondary precious metals and sulphides, specifically silver, copper and molybdenum. The Cisneros property has been the primary focus of AGD's exploration activities to date consisting of surface soil and rock geochemistry, structural and alteration mapping, as well as mapping and geochemistry of historic artisanal mine workings in the area. There are at least 20 historic artisanal mines in the area where locals extracted high grade vein gold for over 100 years.
AGD is currently evaluating additional opportunities to expand its portfolio of mineral exploration properties in Colombia. AGD is a publicly listed company on the TSX Venture Exchange under the trading symbol AGD and has a total of 26,151,210 common shares issued and outstanding prior to the this private placement. All of the mineral properties AGD owns are considered in the exploration stage of development.
Caution regarding forward looking information
This press release may contain forward-looking statements. Such forward-looking statements involve a number of known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of AGD to be materially different from actual future results and achievements expressed or implied by such forward looking statements. . Actual results can differ materially from those anticipated by management at the time of writing due to many factors, the majority of which are beyond the control of AGD and its management. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date the statements were made. Readers are also advised to consider such forward-looking statements while considering the risks involved.
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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.