SALT LAKE CITY, Oct. 25, 2004 (PRIMEZONE) -- Capital Hill Gold Inc. (the "Company") (OTCBB:CAGI) is pleased to announce it has engaged IBK Capital Corp. ("IBK") as agent to complete a US$3,000,000 best efforts equity financing.
The proceeds from the financing will be used to fund expenditures for alluvial and hard rock exploration and production of the Mexican Hat properties as well as for general and working capital.
IBK will be paid a commission equal to 9% of the total amount of capital raised under the Financing (the "Commission"), and to issue to IBK Capital common share purchase warrants of the Company ("Warrants"). The number of Warrants to be issued to IBK Capital will be equal to 10% of the total amount of the consideration received by the Company, divided by the offering price per share ("Offering Price") under the Financing. One Warrant entitles the holder to acquire one common share of the Company at a price equal to the Offering Price under the Financing for a period of two years from the closing date of the Financing.
IBK Capital Corp.
IBK Capital Corp. has provided financial advisory services to some of the world's largest mining companies over the past 10 years and specializes in early stage equity and debt financing for emerging companies in the natural resource area. Please visit their web site at: http://www.ibkcapital.com to obtain an overview of their core competencies and recent transactions.
On Behalf of the Board,
KENT CARASQUERO Secretary, CFO
Statements contained in this press release, which are not historical facts, are forward looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based largely on the Company's expectations and are subject to a number of risks and uncertainties beyond the company's control, including but not limited to economic, competitive and other factors affecting the Company's operations, management team effectiveness, expansion strategies, available financing, market prices and recovery costs, government regulations involving the Company, facts and events not known at the time of this release and other factors discussed in the Company's filings with the Securities and Exchange Commission. These statements are not guarantees of future performance and readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this release. The Company undertakes no obligation to update publicly any forward-looking statements.