Energold Drilling Corp. Completes $20.0 Million Private Placement of Convertible Secured Debentures

Energold Drilling Corp.

VANCOUVER, BRITISH COLUMBIA--(Marketwired - June 15, 2017) - Energold Drilling Corp. (TSX VENTURE:EGD) (the "Company", or "Energold") is pleased to announce that it has closed its private placement of $20.0 million convertible secured notes (the "Convertible Loan") first announced on February 14, 2017. Extract Advisors LLC ("Extract"), a natural resources investment fund manager with offices in New York and Toronto, through its affiliates ("Extract Affiliates"), has funded US$10.3 million principal amount representing C$13.65 million of the Convertible Loan, with the balance being provided by a syndicate of lenders, including new investors and insiders of the Company, funding the remaining $6.35 million of the Convertible Loan. Participation in this convertible loan financing by insiders of the Company constituted a related party transaction pursuant to TSX Venture Exchange Policy 5.9 and Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions ("MI 61-101"). The Company relied on section 5.5(a) of MI 61-101 for an exemption from the formal valuation requirement and section 5.7(1)(a) of MI 61-101 for an exemption from the minority shareholder approval requirement of MI 61-101 as the fair market value of the insider participation did not exceed 25% of the Company's market capitalization.