VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 27, 2012) -
THIS NEWS RELEASE IS NOT FOR DISTRIBUTION IN THE UNITED STATES OR TO U.S. NEWS AGENCIES
F.D.G. Mining Inc. (TSX VENTURE:FDG) (the "Company") announces that further to its news release dated August 27, 2012, the Company has increased the size of its non-brokered private placement to 531 units ("Units") at a price of $1,000 per Unit for gross proceeds of $531,000.
Each Unit consists of a secured promissory note in the principal amount of $1,000 (each a "Note") and 2,000 common shares at a deemed price of $0.10 per share. The Notes will be for a term of one year, repayable on the first anniversary of the closing date, and bear interest at the rate of 12% per annum, with the first year's full interest of $120 per Note payable up front upon closing. The Notes will also be secured, on a pro rata basis, by a general security agreement over all present and after-acquired personal property of the Company.
The proceeds of the private placement will be used to maintain the Company's interest in and carry out pre-production engineering studies on the Topacio gold concession in eastern Nicaragua, for property tax payments and for general corporate and working capital purposes.
A cash finder's fee of 10% is payable on a portion of the proceeds from the private placement.
About F.D.G. Mining Inc. (www.fdgmining.com)
F.D.G. Mining Inc. is a Canadian junior mining company engaged in acquisition, exploration and development of precious metal properties in Nicaragua. The Company is currently focused on advancing its core property, the past-producing 9300 hectare Topacio gold concession to near term production. Topacio has an NI 43-101 compliant inferred resource of 680,000 tonnes grading 5.2 g/t gold and 34 g/t silver, and a similar geological setting to B2Gold's La Libertad and El Limon mines to the northwest. FDG trades on the TSX Venture Exchange under the symbol FDG.
On Behalf of the Board of Directors
David St. Clair Dunn, P. Geo., President and CEO
This news release contains forward-looking statements which relate to future events or future performance and reflect management's current expectations and assumptions regarding, among other things, the nature and timing of upcoming work programs, geological interpretations, and intended use of proceeds. Forward-looking statements address future events and conditions and therefore, involve inherent risks and uncertainties. Readers are cautioned that these forward looking statements are neither promises nor guarantees, and are subject to risks and uncertainties that may cause future results to differ materially from those expected. The presence of gold deposits on nearby properties to the Company's property is not necessarily indicative of the gold mineralization on the Company's property. All of the forward-looking statements made in this news release are qualified by these cautionary statements and those in our continuous disclosure filings available on SEDAR at www.sedar.com. These forward-looking statements are made as of the date hereof and the Company does not assume any obligation to update or revise them to reflect new events or circumstances save as required under applicable securities legislation.
Neither the 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 news release.