| ||May 20, 2005|
ORKO announces $1,000,000 non brokered private placement and withdrawal of Brokered Private Placement with Haywood Securities
| ||Vancouver, BC, Orko Gold Corporation, ("Orko" or the "Company"), (TSXV-OK). The Company announces that it and Haywood Securities Inc. have mutually agreed to withdraw the brokered private placement announced by news release dated March 16, 2005.|
In its place, the Company announces that it has arranged, subject to all necessary regulatory approvals, a non brokered private placement for 4,000,000 units (the "Units") at a price of $0.25 per unit . Each unit consists of one common share and one-half of a transferable common share purchase warrant. Each whole share purchase warrant is exercisable into one additional common share for a period of two years at a price of $0.30 per share.
The Company will pay a finder's fee of 8% of the proceeds to certain finders at the closing of the private placement in consideration of their efforts in arranging the private placement. The commission may be paid in cash or units having the same terms as the Units issued under the offering, at the election of the finders.
The securities issued above will be subject to a four month hold period.
The net proceeds of the financing will be used to conduct a drilling program on the Company's Mexican property and for general working capital purposes.
The Company is in the midst of a 5000m diamond drilling program on the La Preciosa property. By news release dated May 17, 2005, the Company released the results from the first hole completed under the program. The Company has not received any further assay results to date.
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: Thu Jun 9, 2005, Orko Announces an Additional Financing of 400,000 Units at $0.27 per Unit
You can view the Previous News Releases item: Tue May 17, 2005, Orko Gold Confirms High Grade Silver In Shallow Drill Core at La Preciosa, Mexico; Additional Drill Results Expected
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