| ||February 03, 2006|
Orko Closes Private Placement
| ||VANCOUVER, British Columbia - Orko Gold Corporation ("Orko" or the "Company") is pleased to announce that today it has closed the brokered private placement financing with Haywood Securities Inc. (the "Agent"), that was originally announced on January 13, 2006.|
The financing of 3,400,000 Units was fully subscribed including full subscription of the 3,400,000 Unit over-allotment option. The Company issued 6,800,000 Units at a price of $0.30 per Unit for gross proceeds of $2,040,000. Each Unit consists of one common share and one transferable share purchase warrant, with each warrant exercisable at $0.40 into one additional common share of the Company until February 3, 2007.
The Company has paid to the Agent a corporate finance fee of 100,000 Units plus GST, plus a cash commission. The Company has also granted to the Agent (or to parties directed by the Agent) an aggregate of 680,000 Agent's Options. Each Agent's Option entitles the holder to purchase one Unit (an "Agent's Unit") at a price of $0.30 per Agent's Unit for a period of twelve (12) months from today. Each Agent's Unit is comprised of one common share and one non-transferable share purchase warrant (an "Agent's Warrant"). Each Agent's Warrant is exercisable at $0.40 into one additional common share of the Company until February 3, 2007.
All securities issued under this private placement are subject to a hold period expiring four months from the date of closing. Therefore, all securities issued under the private placement bear a legend stating that the securities may not be traded until June 4, 2006.
The proceeds received from the offering will be used for exploration expenses on the Company's properties in Mexico and general working capital.
Orko is an exploratory resource company focused on silver and gold properties in Mexico. La Preciosa, the Company's principal project, located near the city of Durango, is an advanced silver and gold project under option from Luismin S.A. de C.V., a subsidiary of Goldcorp Inc.
ON BEHALF OF THE BOARD OF DIRECTORS
For further information, please contact Orko Gold Corp. at (604) 684-4691 or via email at [email protected] or visit our website at www.orkogold.com
This News Release may contain forward-looking statements including but not limited to comments regarding the timing and content of upcoming work programs, geological interpretations, receipt of property titles, potential mineral recovery processes, etc. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements. Orko relies upon litigation protection for forward-looking statements.
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