Samco Gold files final prospectus for $25m IPO

Samco Gold Limited (“Samco Gold” or the “Company”) is pleased to announce that it has filed a final prospectus with the securities regulatory authorities in each of the provinces of Canada, other than Québec, in connection with a proposed initial public offering (the “Offering”) of its common shares (the “Common Shares”).

Pursuant to the Offering, the Company will issue 22,727,272 Common Shares at a price of $1.10 per Common Share for gross proceeds of $25,000,000.

Samco Gold has also granted the underwriting syndicate an over-allotment option, which is exercisable for a period of 30 days following the closing of the Offering. If exercised, up to an additional 3,409,091 Common Shares at a price of $1.10 per Common Share may be issued. If the over-allotment option is exercised in full, the gross proceeds of the Offering would increase to $28,750,000.

Closing of the Offering is scheduled for July 6, 2011.

The Offering is being underwritten by a syndicate led by Stifel Nicolaus Canada Inc. and includes GMP Securities L.P. and Canaccord Genuity Corp.

The TSX Venture Exchange (the “Exchange”) has conditionally approved the listing of the Common Shares of the Company, subject to the Company satisfying the customary listing requirements of the Exchange.

A copy of the Company’s final prospectus is available under the Company’s profile on the SEDAR website at www.sedar.com.

About Samco Gold Limited

Samco Gold’s principal business is the acquisition, exploration and development of precious metals resource properties in Argentina. The Company’s principal mineral property is the El Dorado-Monserrat epithermal gold project, located in the Deseado Massif region of Santa Cruz Province, Argentina, approximately 10 kilometres due west of the Cerro Vanguardia Mine operated by AngloGold Ashanti Limited. The Company’s goal is to become a producer of gold through the exploration and development of El Dorado-Monserrat. Samco Gold also owns a portfolio of other mineral exploration properties in the Deseado Massif.

The securities referred to in this press release have not been and will not be registered under the United States Securities Act of 1933, as amended (the ‘‘U.S. Securities Act’’), or any state securities laws and may not be offered or sold within the United States unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available. This press release does not constitute an offer to sell or a solicitation of an offer to buy any of these securities within the United States.

Read the full news release here