| ||March 15, 2005|
ORKO completes its private placement, receives TSX-V acceptance to property acquisitions
| ||Orko Gold Corporation ("the Company") is pleased to announce that it has closed its non brokered private placement announced by news releases dated January 12, and January 17, 2005. The Company has issued 2,250,000 units, each unit consisting of one common share without par value and one non-transferable share purchase warrant entitling the holder thereof to purchase an additional common share at a price of $0.15 per share until the close of business on March 14, 2006 and at $0.20 per share until the close of business on March 14, 2007. In addition, the Company issued 195,000 units having the same terms and conditions as the private placement units as a finder's fee in conjunction with the private placement.|
The proceeds of the private placement will be used for the ongoing exploration and development of the La Preciosa and Santa Monica Mexican mining properties in which the Company has an option to earn up to an undivided 75% interest. Under the terms of the option agreements entered into between the Company and Wheaton River Minerals Ltd. and its Mexican subsidiaries, Minas Sanluis de C.V. ("Minas Sanluis"), Luismin S.A. de C.V. and Minera Thesalia, S.A. de C.V. (the "Wheaton River Group") dated November 17, 2003 and May 11, 2004, the Company may earn an undivided 51% interest in each property by incurring US$1,000,000 in exploration expenditures in the next five years and issuing 100,000 shares of the Company (50,000 shares upon acceptance by the TSX Venture Exchange and 50,000 shares on the first anniversary of such date) in respect of each property.
The Company may earn a further 24% interest in each property by expending an additional $500,000 by the end of the 6th year on each property. Upon the Company earning a 75% interest in either property, Minas Sanluis has a 90 day option period to buy back an undivided 35% right, title and interest in such property by paying the Company US$1.5 million. Should Minas Sanluis elect to exercise this buy back option, it will have an undivided 60% interest and Orko an undivided 40% interest in such property. Once the option to earn a 51% undivided interest has been exercised, the Company and Minas Sanluis will form a jointly held Mexican corporation to carry out operations on the properties.
The Company received TSX Venture Exchange acceptance to the option agreements on March 10, 2005.
The Company has completed an IP survey on the property and is currently preparing to commence a drilling program on the La Preciosa property.
ON BEHALF OF THE BOARD OF DIRECTORS
Gary Cope, President
For further information, please contact the Kottmeier Resolution Group at (604) 689 7422 or via email at [email protected] or the Company at (604) 684-4691 or via email at [email protected]
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
You can view the Next News Releases item: Wed Mar 16, 2005, ORKO announces Brokered Private Placement with Haywood Securities Inc.
You can view the Previous News Releases item: Thu Mar 3, 2005, LP. Program Complete: Drilling to Commence on La Preciosa
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