CALGARY, July 17 /PRNewswire-FirstCall/ -- Infinito Gold Ltd. (the "Company") announces that it has issued 250,000 shares and 1,200,000 share purchase warrants (the "Warrants") to Paribas North America, Inc. (a wholly-owned subsidiary of BNP Paribas) in respect of services provided by BNP Paribas to the Company. BNP Paribas has provided structuring advice and engaged in background preparations to enable it to proceed promptly with project debt financing for the Company's Crucitas Project if the challenge to the Company's mining permit before the Costa Rican constitutional court (the SALA IV) is resolved favourably.
Each Warrant entitles the holder to acquire one common share of the Company at $0.204 per share on or before July 16, 2012, but 600,000 of the 1,200,000 Warrants issued only vest and become exercisable upon completion and drawdown of project debt financing by the Company. In addition, the Company has agreed to issue to Paribas North America, Inc. a further 250,000 common shares at the closing and drawdown of the project debt financing.
The 250,000 shares, the Warrants and the shares issuable under the Warrants, are subject to a hold period expiring on November 17, 2009.
The Company advises that it has proceeded with preparations for a project debt financing as it considered it to be in the best interests of the Company in light of its cash flow needs, notwithstanding the proceedings before the SALA IV have not been resolved. No inference should be drawn from the payment of the shares and Warrants that the Company has secured project debt financing or that the SALA IV proceedings will be resolved favourably.
Caution Regarding Forward-Looking Information and Statements ------------------------------------------------------------
Certain statements in this press release address future events and conditions and, as such, involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the statements. These factors include, among others, the inherent risks involved in the exploration and development of mineral properties, the uncertainties involved in interpreting drilling results and other geological data, fluctuating metal prices, the possibility of project cost overruns or unanticipated costs and expenses, uncertainties relating to the availability and costs of financing needed in the future, the possibility that all necessary governmental and regulatory approvals will not be received, and the availability of a qualified workforce and third party contractors necessary for the development and operation of a mine. The Company undertakes no obligation to update these forward-looking information or statements if circumstances or management's estimates or opinions should change. The reader is cautioned not to place undue reliance on forward-looking information or statements.
INFINITO GOLD LTD. John Morgan President "The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release."
Infinito Gold Ltd.
CONTACT: INFINITO GOLD LTD., 216, 102 - 8th Avenue S.W., Calgary,
Alberta, T2P 1B3, Telephone: (403) 444-5191
