evg article

EnviroGold raises additional capital at premium to market
Thursday, March 31, 2011 Near term gold producer EnviroGold (ASX: EVG) has managed to raise $2.55 million at $0.15 today, a 7.1% premium to the market price.

Fresh from signalling an intention to list on the Toronto Stock Exchange to tap an investor base closer to its Latin American operations, the company has placed 7,000,000 shares to Dubai based Jubilee Company at $0.15 each to raise $1,050,000.

EnviroGold executive chairman Brian Johnson's company Tristar Holdings Pty Ltd has acquired 10,000,000 shares at $0.15 through the conversion of options.

The option conversions were made at this time, rather than at the end of the year when they could be expected to be exercised (expiry 31 December 2011), and will reduce the requirement to place additional shares to meet the year?s exploration program in Ecuador and the Dominican Republic.

The company is in discussion with a number of option holders to exercise in the near term, for the same reasons.

An application will be made by EnviroGold for a dual listing on the Toronto Stock Exchange in two to three months. The proposed listing is expected to coincide with a placement of around 7% of the Company?s shares (30 to 40 million) to Canadian investors to create initial liquidity in the local market.

Funds raised will be applied to this year?s exploration program in Ecuador and the Dominican Republic. A Toronto based stockbroking firm will be appointed shortly to sponsor the listing and effect the proposed share placement.

Companies listed on the Toronto Stock Exchange with projects in Latin America often trade at higher valuations given the understanding of political issues, geological potential, and the widespread activity of Canadian mining companies in Latin America.

Macquarie Bank is a substantial shareholder of EnviroGold with 5.95%.