DENVER, Nov. 5, 2012 /PRNewswire/ -- Discovery Gold Corporation (OTCQB: DCGD) ("Discovery Gold" or the "Company") is pleased to announce that the Company has closed the first tranche of a proposed financing (the "Offering"). This tranche consisted of 440,000 units at $0.35 each for proceeds of $154,000. Each unit consists of one restricted common share of the Company's stock plus half a warrant to purchase a common share at $0.60/share for 18 months from the closing date. The Company paid a finder's fee consisting of 6% payable in cash plus 6% payable in warrants to Haywood Securities, Inc.
Discovery Gold's President, Steven Flechner, said "We are pleased to have closed this first tranche of proposed financing. It positions us to move forward with permitting, land payments, and related matters in preparation for undertaking detailed soil sampling and surface trenching of gold showings strategically located at Discovery Gold's Edum Banso Gold Project in proximity to gold deposits currently being mined by others."
It is anticipated that proceeds received from the Offering will be used in relation to gold exploration and development of the Edum Banso Gold Project, general working capital, and other such purposes as the Company may determine.
About Discovery Gold Corporation
Discovery Gold Corporation is an emerging U.S. based mineral exploration company. The Company's wholly-owned subsidiary, Discovery Gold Ghana Limited, currently holds a 95% interest in the option of the exclusive rights to explore the Edum Banso Gold Project within the historic and prolific gold producing Ashanti Gold Belt in Ghana.
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Forward-Looking Statements/Disclaimer: Certain statements in this press release that are not historical facts are "forward-looking statements" within the meaning of that term in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such statements may be identified by the use of words such as "anticipate", "believe", "expect", "may", "will", "would", "should", "plan", "projected", "intend", and similar expressions. The Company bases these forward-looking statements on current expectations and projections about future events, based on information currently available. Such forward-looking statements, involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking statements. The Company disclaims any obligation to update any of its forward-looking statements, except as may be required by law. The Company's interest in the Edum Banso Gold Project is subject to final Ghanaian government approval of the licence transfer. The Company has no mineral resource or reserve estimate for the Edum Banso Gold Project at this time, has no assurance that it will discover significant mineral resources, and may not have sufficient funding to thoroughly explore, drill or develop its property.
SOURCE Discovery Gold Corporation