Oro Gold increases financing size to 12.9 million units

Oro Gold increases financing size to 12.9 million units

2009-06-17 08:41 ET - News Release

Mr. Darren Bahrey reports

ORO GOLD ANNOUNCES INCREASE IN PRIVATE PLACEMENT TO UP TO $12 MILLION

Oro Gold Resources Ltd. has increased the size of its private placement previously announced in Stockwatch on June 16, 2009, to 12.9 million units of the company for gross proceeds of $9.03-million. Each unit, priced at 70 cents, will consist of one common share and one-half common share purchase warrant; each whole warrant will entitle the holder to purchase one additional common share at an exercise price of $1 per share for 18 months from the closing date. The units will be subject to a four-month hold period from the closing date.

The syndicate of underwriters for the offering is led by Wellington West Capital Markets Inc., and includes Canaccord Capital Corp. and Blackmont Capital Inc.

The underwriters shall also have the option exercisable up to 48 hours prior to closing to increase the size of the offering by up to an additional 4.3 million units, for gross proceeds under the offering of $12.04-million, if exercised in full.

The offering is expected to close on or about July 7, 2009, and is subject to applicable regulatory approvals.

We seek Safe Harbor.