Indigo Exploration Arranges $982,500 Private Placement Financing With One of the Largest Precious Metals Mutual Funds in Canada
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 08/30/11 -- Indigo Exploration Inc. (TSX VENTURE: IXI)(FRANKFURT: INE) is pleased to announce that it has arranged a non-brokered private placement of 3,275,000 units of the Company (the 'Units') at a price of $0.30 per Unit for gross proceeds of $982,500 with one of the largest precious metals mutual funds in Canada. Each Unit will consist of one common share and one-half of one common share purchase warrant ('Warrant'). Each full Warrant will entitle the holder to purchase one common share of the Company for a period of eighteen months from the closing date, at an exercise price of $0.50 per common share. The purchase price was set at a 10-per-cent premium over the 30-day volume-weighted-average market price prior to this announcement.
The Company will pay finder's fees equal to 7.0% of subscription amounts located by Topleft Securities Ltd., payable in cash, plus issue finder's warrants in an amount equal to 7.0% of Units subscribed for, with each such finder's warrant exercisable into one common share of the Company at a price of CDN $0.30 for 18 months from closing.
Closing of the Offering is anticipated to be on or about September 9, 2011, subject to receipt of applicable regulatory approvals including approval of the TSX Venture Exchange. Securities issued under the Offering will be subject to a four month hold period, which will expire four months from the date of closing.
The proceeds from the Offering will be used to incur exploration expenditures on the Company's mineral properties in Burkina Faso and for general working capital.
Upon the closing of the financing, this mutual fund will own almost 10% of the shares of the Company on an undiluted basis.
Tim Henneberry, Indigo President and CEO, stated, 'Indigo's Board of Directors are very encouraged by this strategic investment at this stage in Indigo's development, as it reflects a high level of confidence in the Company's high-grade Moule Vein 3 gold discovery and the upcoming 15,000 metre drilling program in Burkina Faso.'
For additional information please visit the Company's website at www.indigoexploration.com.
Certain statements in this press release may be considered forward-looking information, including those relating to the 'expectations', 'intentions' or 'plans' of the Company. Such information involves known and unknown risks, uncertainties and other factors -- including the approvals of regulators, availability of funds, the results of financing and exploration activities, the interpretation of drilling results and other geological data, project cost overruns or unanticipated costs and expenses and other risks identified by the Company in its public securities filings -- that may cause actual events to differ materially from current expectations. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company disclaims any intention or obligation to update or revise any forward-looking statements, except to the extent required by law, whether as a result of new information, future events or otherwise.
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.
Contacts:
Indigo Exploration Inc.
Tim Henneberry
President and CEO
604-681-3422
thenneberry@indigoexploration.com
www.indigoexploration.com