LER Lero Gold Corp

THIS NEWS RELEASE IS INTENDED FOR DISTRIBUTION IN THE UK AND IN CANADA ONLY AND
IS NOT INTENDED FOR PUBLICATION, RELEASE OR DISTRIBUTION IN OR INTO AUSTRALIA,
JAPAN, SOUTH AFRICA, THE RUSSIAN FEDERATION, OR THE UNITED STATES OF AMERICA.


Lero (TSX VENTURE:LER) is pleased to announce that Canaccord Adams Limited
("Canaccord") the sole lead and underwriter of its recent private placement (the
"Offering"), has exercised, in full, their over-allotment option referred to in
the announcement on 18 April 2008. Pursuant to the over-allotment option,
Canaccord has purchased an additional 7,058,823 common shares of the Company at
the offering price of Cdn$0.85 per common share for gross proceeds of
Cdn$5,999,999.55. 


The exercise of the over-allotment option increases the aggregate number of
shares sold in the Offering to 77,647,058 common shares in the Company resulting
in gross proceeds of approximately Cdn$66 million. 


The net proceeds from the Offering will be used primarily to fund a
US$25,000,000 loan from Lero to European Minerals Corporation ("EMC") in
connection with the proposed acquisition by EMC of all of the outstanding common
shares of Lero in exchange for common shares of EMC on a one share for one share
basis (see the joint announcement of Lero and EMC of 18 April 2008 for further
details), to fund continued exploration and drilling on Lero's Taldybulak Talas
(Kyrgyzstan) and Karchiga (Kazakhstan) projects with the remainder being used
for working capital and potential acquisitions. EMC plans to use the net
proceeds of the loan financing to fund advancement of its mineral projects and
for general corporate purposes. The Offering has received conditional regulatory
approval and the Offering Shares have been issued to the investors.


This press release does not constitute an offer to sell or the solicitation of
an offer to buy any securities of the Company within the United States. The
securities of the Company have not been and will not be registered under the
United States Securities Act of 1933, as amended (the "1933 Act"), or any state
securities laws. Accordingly, the shares may not be offered or sold in the
United States or to U.S. persons (as such terms are defined in Regulation S
under the 1933 Act) unless registered under 1933 Act and applicable state
securities laws or an exemption from such registration is available.


Notes to Editors:

1. No stock exchange, securities commission or other regulatory authority has
approved or disapproved the information contained herein.


2. Forward-Looking Information - This news release contains or refers to
forward-looking information. All statements, other than statements of historical
fact, that address activities, events or developments that EMC and Lero
believes, expect or anticipate will or may occur in the future are
forward-looking information. Such forward-looking information includes
statements contained in this news release regarding the completion of the
Acquisition, targets, estimates and/or assumptions in respect of future annual
production of gold and copper, costs, commodity prices, mineral resources and
reserves, timing of commencement and completion of "hot" commissioning and
commencement of operations, potential mineralization and future exploration,
development and operational plans and objectives (including delineating
additional mineral resources). This forward-looking information reflects the
current expectations or beliefs of EMC and Lero based on information currently
available to them. Forward-looking information is subject to a number of risks
and uncertainties that may cause the actual results of EMC and Lero to differ
materially from those discussed in the forward-looking information, and even if
such actual results are realized or substantially realized, there can be no
assurance that they will have the expected consequences to, or effects on EMC
and/or Lero.

Factors that could cause actual results or events to differ materially from
current expectations include, but are not limited to: the grade and recovery of
ore which is mined varying from estimates; capital and operating costs varying
significantly from estimates; inflation; changes in exchange rates; fluctuations
in commodity prices; delays in the development or commissioning of, and the
commencement of operations at, EMC's Varvarinskoye Project caused by
unavailability of equipment, labour or supplies, weather and climatic
conditions, delays in the delivery and installation of plant and equipment or
otherwise; termination or suspension of EMC's current debt facility; failure of
Lero to raise the funds necessary to complete the Acquisition; the failure of
EMC and Lero to negotiate the terms under which funds are to be advanced as
contemplated herein or to negotiate definitive agreements; delays in obtaining
or failure to obtain required regulatory and shareholder approvals; uncertainty
of the outcome of any litigation; inability to delineate additional mineral
resources or reserves; and other factors. Any forward-looking information speaks
only as of the date on which it is made and, except as may be required by
applicable securities laws, EMC and Lero disclaim any intent or obligation to
update any forward-looking information, whether as a result of new information,
future events or results or otherwise. Although EMC and Lero believes that the
assumptions inherent in the forward-looking information are reasonable,
forward-looking information is not a guarantee of future performance and
accordingly undue reliance should not be put on such statements due to the
inherent uncertainty therein.

Lero Gold Corp (TSXV:LER)
Historical Stock Chart
From Oct 2024 to Nov 2024

Lero Gold Corp (TSXV:LER)
Historical Stock Chart
From Nov 2023 to Nov 2024