VANCOUVER, April 6 /PRNewswire-FirstCall/ - Prosperity Goldfields Corp. (TSX-V: PPG) ("Prosperity Goldfields") announced today that it has completed a private placement (the "Offering") of 4,000,000 flow-through units and 11,470,604 non-flow-through units ("Units") at $0.30 per Unit for gross proceeds of $4,641,181. The flow-through units and non-flow-through units have the same terms. Each Unit consists of one common share and one-half of one common share purchase warrant ("Warrant"). Each whole Warrant entitles the subscriber to acquire one additional common share of the Company for a period of two years at $0.45 per common share.
The proceeds of the Offering will be used for resource expenditures in connection with the Kiyuk Property near Nueltin Lake in Nunavut, and for general working capital purposes. The Company has issued an aggregate total of $123,130 in cash and 145,800 common shares in connection with finder's fees payable under the Offering. The common shares issued pursuant to the Offering are subject to a four month and one day hold period ending August 7, 2011.
The Company previously announced a spring 2011 drill program at Kiyuk that would run from late March to mid-May on the assumption that all required permits would be received by mid-March. While the Company has received some of its required permits, one permit is still within the approval process. Based on the permitting delays, the Company currently anticipates the drill program will commence in June 2011.
The Company has issued 2,000,000 common shares to Evolving Gold Corp. pursuant to a Funding Agreement dated October 26, 2010, between the Company and Evolving Gold Corp. Pursuant to the terms of the Funding Agreement, the Company agreed to reimburse Evolving Gold, through the issuance of Prosperity common shares at a deemed price of $0.15 per share, for the payment of transaction costs related to the spin-out of the Company from Evolving Gold by way of a dividend-in-kind to shareholders of Evolving Gold.
About Prosperity Goldfields Corp.
Prosperity's principal business is the acquisition, exploration and development of resource properties for the mining of precious metals. Prosperity acquired the option to acquire the mineral claims comprising the "Kiyuk Property" near Nueltin Lake in Nunavut. Prosperity's principal objective is to explore the Kiyuk Property.
For more information about Prosperity please visit: www.prosperitygoldfields.com.
On Behalf of the Board of Directors
PROSPERITY GOLDFIELDS CORP.
"R. Bruce Duncan"
R. Bruce Duncan
CEO and Director
"Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release."
SOURCE Prosperity Goldfields Corp.