| ||March 16, 2005|
ORKO announces Brokered Private Placement with Haywood Securities Inc.
| ||Vancouver, BC, Orko Gold Corp., ("Orko" or the "Company"), (TSXV-OK), announces that it has entered into a Letter of Intent with Haywood Securities Inc. (the "Agent") pursuant to which it arranged, subject to regulatory approval, a private placement of up to 2,000,000 units (the "Units") at a price of $0.30 per unit for a total proceeds of $600,000 (the "Offering"). Each Unit consists of one common share and one-half of a 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 $0.35 per share.|
The Agent has been granted an oversubscription option to place up to an additional 1,350,000 units on the same terms and conditions as set out above for additional gross proceeds of up to $405,000.
The Agent will be paid a commission of 7.5% of the proceeds at the closing of the private placement in consideration of its efforts in arranging the private placement. The commission may be paid in cash or units having the same terms as the Units at the election of the Agent. The Company will also grant and issue to the Agent upon closing, share purchase warrants (the "Broker's Warrants") equal to 15% of the number of the units sold pursuant to the Offering including on any oversubscription. Each Broker's Warrant will be exercisable into one unit (the "Broker's Units") at a price of $0.30 per Unit at any time prior to the date that is two years from closing. The Company will also grant and issue to the Agent upon closing warrants entitling the Agent to acquire 100,000 units plus GST (the "Corporate Finance Units") as a corporate finance fee. The Broker's Units and Corporate Finance Units shall have the terms as the Units issued under the Offering.
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 La Preciosa property in Mexico and for general working capital purposes.
The Offering is subject to the Company and the Agent entering into a formal Agency Agreement, standard due diligence and regulatory approval.
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: Mon Mar 21, 2005, Orko commences drilling on La Preciosa Mineral Project, Durango State, Mexico
You can view the Previous News Releases item: Tue Mar 15, 2005, ORKO completes its private placement, receives TSX-V acceptance to property acquisitions
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