September 12, 2005
Carpathian Gold Inc. (the "Corporation") ( TSX-V - CPN ) Announces Closing of Private Placement Financing
TORONTO, Sept. 12 /CNW/ - The Corporation is pleased to announce that it has completed a private placement with Desjardins Securities Inc. (the "Agent") of 11,500,000 common shares in the capital of the Corporation at a price of $0.10 per common share (the "Common Shares") for gross proceeds of $1,150,000 (the "Offering") representing subscriptions for the maximum offering. The Offering was previously announced on August 5, 2005 and is subject to TSX Venture Exchange final approval. All Common Shares issued in connection with the Offering are subject to a four month hold period from the date of issuance.
In consideration of the services rendered by the Agent in connection with the Offering, the Agent received an aggregate amount of $70,500 in respect of the sale of the Common Shares. In addition, the Agent also received an aggregate of 1,005,834 compensation options (the "Compensation Options"). Each Compensation Option will entitle the Agent to acquire one (1) Common Share at a price of $0.10 per Common Share at any time prior to and including 5:00 p.m. (Toronto time) on that date which is 18 months following the date of issuance and will be subject to a four month hold period. As further consideration, the Corporation issued to the Agent a corporate finance work fee of 100,000 non-transferable warrants (the "Corporate Finance Warrants"). Each Corporate Finance Warrant will entitle the Agent to purchase one (1) Common Share at a price of $0.10 per Common Share for a period of 18 months from the date of issuance and will be subject to a four month hold period.
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After giving effect to the Offering, the Corporation will have 60,162,262 Common Shares issued and outstanding.
The net proceeds of the Offering will be used primarily for exploration work on the Corporation's Romania properties and for working capital purposes. More specifically the Corporation will undertake a drilling program of up to 3,000 metres, primarily on its Oravita Exploration Licenses in Southern Romania and/or on its other licenses held in the country. It is anticipated that the drilling program will commence within two weeks.
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Carpathian Gold Inc. is a mineral exploration company focused on goldexploration on its properties in Romania.
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The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this news release.
This press release includes certain statements that may be deemed "forward-looking statements". All statements in this release, other than statements of historical facts, that address future exploration drilling, exploration activities and events or developments that the Corporation expects, are forward looking statements. Although the Corporation believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, exploitation and exploration successes, continued availability of capital and financing, and general economic, market or business conditions. %SEDAR: 00018939E
For more Information please contact:
Dino Titaro, President and CEO
Website: : www.carpathiangold.com
Tel. +1 (416) 368-7744 (CAN)
Fax. +1 (416) 368 2579 (CAN)
e-mail info@carpathiangold.com
OR
Eric Leboeuf, Investor Relations
Tel. +1 (514) 341-0408 or
1-866-460-0408
Fax. +1 (514) 341-1527
e-mail: ericleboeuf@paradox-pr.ca
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