Closing of Private Placement, Appointment to Investor Relations, Acquisition of the El Taco Property, and Grubstake Agreement
Endeavour Gold Corp. (EDR: TSX-V) announces the closing of its non-brokered private placement for 3,050,000 units at $0.30 per unit for gross proceeds of $915,000. Each unit is comprised of one common share and one-half share purchase warrant; each full warrant can be exercised to purchase an additional common share at $0.35 until October 6, 2005. Shares issued pursuant to this private placement are subject to a hold period expiring April 17, 2004. Proceeds will be used to fund exploration work on mineral properties in Quebec and Mexico and for working capital purposes. Finders' fees of $26,670 are payable relative to the private placement.
The Company is pleased to announce the appointment of Mr. Hugh Clarke of Chinanose Enterprises Inc. to provide investor relation services. Mr. Clarke has been involved in a variety of capacities in the exploration / mining industry for over two decades. He has acted as a Director and Officer in a number of public and private companies, raised equity financings at both the institutional and retail levels and contracted out his services as an investor relation manager to a number of public companies. Mr. Clarke's remuneration is $60,000 per annum and the Company will grant him 100,000 stock options with a term of 2 years and an exercise price of $0.45, subject to regulatory approval. Investor relation services provided by Mr. Clarke include shareholder and investor communication, greater market exposure of the Company and its projects to the investment community, and support services in identifying sources of capital financings.
The Company has received regulatory approval for the option to earn a 100% interest in the El Taco gold (zinc-copper) property located in Sonora, Mexico, by making cash payments of US$100,000 and the issuance of 200,000 common shares over a four year period, subject to a 2% net smelter royalty.
The Company has entered into a Grubstake Agreement with Mr. Kelly Cross to acquire several mining properties in Mexico, subject to regulatory approval. The Company shall pay Mr. Cross a monthly fee of US$5,000. Moreover, the Company agrees to pay Mr. Cross an acquisition bonus of US$10,000 plus 100,000 common shares, if the Company acquires at least two mining properties from Mr. Cross. If the Company continues to retain interests in at least two properties, the Company agrees to pay Mr. Cross US$140,000 and 400,000 common shares over a four year period, which would be reduced by 50% should the Company only retain one property. Mr. Cross retains a 1% net smelter royalty.
The Company also entered into an arrangement with Manhattan Minerals whereby the Company will issue 20,000 common shares to Manhattan Minerals in exchange for proprietary information concerning properties which the Company is evaluating for acquisition.
Endeavour Gold Corp. (EDR: TSX-V) is a recently re-organized junior exploration company focused on acquiring a portfolio of attractive gold-silver prospects in Mexico and discovering new precious metal deposits. Canarc Resource Corp. holds a minority shareholding in the Company and manages the affairs of Endeavour.
On Behalf of the Board of Directors,
ENDEAVOUR GOLD CORP.
/s/ "Bradford J. Cooke"
Bradford J. Cooke
President and CEO
"The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this News Release."