Austral Gold Limited: Austral Gold Closes Acquisition of Ensign Gold
"Company" or
"Austral") is pleased to announce that its wholly-owned subsidiary, Argentex Mining Corp., has completed its purchase of 5,950,000 units (each a
"Unit") in the capital of Ensign Gold Inc. (
"Ensign"), a privately-held Canadian company with exploration assets in the state of Utah, U.S.A., for an aggregate purchase price of C$1,487,500 (approximately US$1,171,260), or C$0.25 per Unit.
Each Unit consists of one Class A share (each, a
"Share") in the capital of Ensign and one-half of one transferable share purchase warrant (each whole warrant, a
"Warrant"). Each Warrant will entitle the holder to purchase one additional Share at an exercise price of $1.50 for a period of 36 months, subject to an acceleration provision. After adjusting for this subscription, Argentex owns approximately 19.96% of the issued and outstanding Ensign Shares on an undiluted basis and approximately 27.22% on a partially diluted basis (approximately 22.90% on a fully diluted basis).