BCGold Corp. TSX VENTURE : BCG

October 06, 2008 09:00 ET

BCGold Corp. Completes $1.5 Million Private Placement Financing

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 6, 2008) - BCGold Corp. ("BCGold" or the "Company") (TSX VENTURE:BCG) is pleased to announce that it has completed its recently announced non-brokered private placement for aggregate gross proceeds of $1,465,000, through the sale of 5,675,000 flow-through common shares ("FT Shares") at a price of $0.20 per FT Share and 1,650,000 units ("NFT Units") at a price of $0.20 per NFT Unit. Each NFT Unit comprises one non-flow-through common share ("NFT Shares") and one-half of one non-flow-through common share purchase warrant, each whole such common share purchase warrant exercisable to purchase one additional NFT Share at $0.30 per share in the first year, and $0.50 per share in the second year. The securities are subject to a hold period and may not be traded until February 4, 2009 except as permitted by Canadian securities legislation and the TSX Venture Exchange.

BCGold is pleased that Kinross Gold Corporation ("Kinross") subscribed for 1,025,000 of the NFT Units. Kinross previously held 3,000,000 common shares of BCGold, representing approximately 12.7% of the issued and outstanding common shares of BCGold prior to the financing. As a result of the financing, Kinross holds 4,025,000 common shares and 512,500 common shares purchase warrants of BCGold, representing approximately 13.0% (basic) of the issued and outstanding common shares of BCGold following the completion of the financing. BCGold relied on the formal valuation and minority approval exemptions in subsections 5.5(a) and 5.7(a), respectively, of Multilateral Instrument 61-101 and the financing was completed less than 21 days before the issuance of a material change report with respect to the financing for commercial reasons. The participation of Kinross in the financing was approved by the Board of Directors of BCGold.

The remainder of the offering was subscribed by 4 prominent funds and a private investor. Finder's fees totalling $70,700 in cash, equal to 7% of the amount placed by certain finders, were paid by the Company. BCGold intends to use the proceeds from the offering to offset general operating and direct exploration project costs primarily on the Company's wholly-owned Carmacks Copper Gold Properties in Central Yukon and partially on the Company's Engineer Mine Property in British Columbia.

About BCGold Corp.

BCGold Corp. (TSX VENTURE:BCG) is a Vancouver-based junior resource company focused on base and precious metal exploration in under-explored historic mining and exploration districts in British Columbia and Yukon. BCGold acquires and advances conceptual, early and mid-stage, quality exploration opportunities towards resource development utilizing internal expertise and by engaging preferred joint venture partners.

On behalf of the Board of Directors,

Brian P. Fowler, P. Geo., President & CEO

Some statements in this news release contain forward-looking information. These statements include, but are not limited to, statements with respect to future payments, expenditures and exploration, development and production activities. These statements address future events and conditions and, as such, involve known and unknown risks, uncertainties and other factors, which may cause the actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the statements. Such factors include, among others, the timing of future payments, expenditures and the timing and success of future exploration, development and production activities.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.