June 16, 2010, Calgary, Alberta: Antioquia Gold Inc. ("Antioquia") (TSX-V: AGD) is pleased to announce its intention to complete a private placement subject to the approval of the TSX Venture Exchange ("TSX-V") pursuant to TSX-V Policy 4.1 (Private Placements). Antioquia has entered into an engagement agreement ("Engagement Agreement") with Union Securities Ltd. ("Union"), dated June 15, 2010. The intention is to issue a minimum of 11,500,000 units and a maximum of up to 14,000,000 units at $0.22 per unit for cash consideration of a minimum of $2,530,000.00 and a maximum of up to $3,080,000.00, where one unit is comprised of one common share and one half of one common share purchase warrant where a full warrant entitles the holder to purchase one additional common share for $0.35 per share for a period of 24 months from the closing date.
Under the terms of the Engagement Agreement, Antioquia grants to Union an over-allotment option to purchase up to an additional 2,100,000 units at a price of $0.22 per unit for additional cash consideration of $462,000.00, and if exercised, must be executed within 5 business days of the closing date and completed within 15 business days of the closing date.
The Engagement Agreement also calls for payment of 7% in cash commission based on units sold and the over-allotment option payable at closing, and, Antioquia will issue to Union, at closing, compensation options equal to 7% of all units sold pursuant to the offering and the over-allotment option, where each Compensation Option entitles Union to purchase one unit of Antioquia at a price of $0.22 per unit at any time prior to the date that is 24 months from the closing date.
Upon completion of this private placement Antioquia will have up to 80,783,205 common shares issued and outstanding. The cash proceeds will be added to working capital and thereby used to continue exploration activities and fund the drilling programs in Colombia.
Antioquia is a Calgary-based mineral exploration company, focused on searching out precious metals and other mineral opportunities in Colombia. Antioquia's flagship property is the Cisneros project, located 70 kilometers northeast of Medellin in the Department of Antioquia, Colombia.
Caution regarding forward looking information
This press release may contain forward-looking statements. Such forward-looking statements involve a number of known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of AGD to be materially different from actual future results and achievements expressed or implied by such forward looking statements. Actual results can differ materially from those anticipated by management at the time of writing due to many factors, the majority of which are beyond the control of Antioquia Gold Inc. and its management. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date the statements were made. Readers are also advised to consider such forward-looking statements while considering the risks involved.
For further information on Antioquia Gold Inc., visit our website at www.antioquiagoldinc.com or contact
Sheri Torske, Mgr, Investor Relations Antioquia Gold Inc. 403-260-5383 Email: email@example.com
Robert James, Chief Financial Officer Antioquia Gold Inc. 403-630-5917 firstname.lastname@example.org
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.